Kottayam Co-operative Bank was registered and started to function in April 1923 (17 Meenam 1098). The original name of the bank was 'Paraspara Sahaaya Aikya Sangham'. It was commonly known by the name 'Paraspara Sahaaya Sangham'. The term 'Aikya' (meaning 'united') was added in the name, since our bank was registered with the purpose of supervising primary societies. Many of the societies that were functioning during that period were named after community names like 'Nayar Paraspara Sahaya Sangham', 'Eezhava Paraspara Sahaya Sangham' etc. There were thirteen co-operative societies at Kottayam when the bank was registered. The main function of the 'Aikya Sangham's was the supervision of its member societies. The bank concentrated in starting of societies, rectifying their functional shortcomings, giving them operational and financial guidelines, auditing of societies and mediation in disputes. The bank was registered with Kottayam Taluk as its area of operation.
The banking operations were started as per the decisions made in the general body meeting held in May 1930 (25 Idavam 1105) and accordingly the name was changed as 'Kottayam Paraspara Sahaaya Panamidapaad Aikya Sangham' (Kottayam Co-operative Banking Union). The initial capital of the Banking Union was Rs.2800/-, which was contributed collectively by the twenty three member societies that were functioning in the Kottayam Taluk.
The first secretary was Shri Andoor Sankarappillai. The Aikya Sangham was transformed to Banking Union with the efforts by Shri Kumarakom M N Narayana Menon, Shri Andoor Sankarappillai and Shri P M Mani (Palathra, Veloor). Later Shri E R Velupillai was the major contributor to the Bank's growth. Since 1930 (1105) he was an elected member of managing committee of the union and in 1933 (1108) he became the secretary. During that period, the bank was commonly known as 'Bank of Veluppillai Sir'.
Since its rebirth as Banking Union until 1934 (1119)
Today the Bank has branches in the 11 main centres in Kottayam Taluk. Under the leadership of eminent personalities, the bank has grown to its present stature.The bank with its sincere and efficient staff members, has ever been the best in customer service. With a new face, the bank is marching ahead to a new phase. The addition of many state of the art services to our platter adds value to our motto; 'Responsible Banking, People Banking'.