''Vysya Bank'' was an Indian private bank in Karnataka, India, during 1930–2003.

History

Established in 1930s, Vysya Bank was formally incorporated and favours the Arcot Mudaliar community in the city of

Bangalore Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...

, Karnataka. The state of

Karnataka Karnataka ( ) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed as Mysore State on 1 November 1956, with the passage of the States Reorganisation Act, 1956, States Re ...

is known as the "cradle of Indian banking" due to the region's bygone banking relationship with several European East India Companies during the 17th, 18th and 19th centuries. Seven of the country's leading banks (

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, and The Vysya Bank) were originally established in Karnataka. From the 1930s through the 1950s, Vysya Bank built its banking business organically in southern India. The bank concentrated on serving the Vysya community, a merchant/trading community operating across Karnataka and

Andhra Pradesh Andhra Pradesh (ISO 15919, ISO: , , AP) is a States and union territories of India, state on the East Coast of India, east coast of southern India. It is the List of states and union territories of India by area, seventh-largest state and th ...

. In 1958, the bank was licensed by the

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

(RBI) to expand its banking operations nationwide. In 1972, the RBI upgraded Vysya Bank to a national ''B class'' bank. In 1987, Vysya Bank established two independently operating subsidiaries providing equipment leasing and home mortgaging services (Vysya Bank Leasing Ltd and Vysya Bank Housing Finance Ltd, respectively). In 1994, Vysya Bank began marketing several innovative financial products to the fast-growing Indian middle-class segment (e.g. ''Vysprime'' and ''Vysinvest'' for NRIs, ''Vysbuy'' for consumer financing, ''Vysmobile'' for auto loan financing, and ''Vysequity'' for common equity financing).

Take-over

The major shares of the bank were taken over by

ING Group ING Group N.V. () is a Dutch multinational corporation, multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, whol ...

in 2002 and the bank was renamed to

ING Vysya Bank ING Vysya Bank was a privately owned Indian multinational bank based in Bangalore, with retail, wholesale, and private banking platforms formed from the 2002 purchase of an equity stake in Vysya Bank by the Dutch ING Group. This merger marked ...

in 2003. In July 2003,

Dewan Housing Finance Corporation Piramal Finance Limited (formerly Piramal Capital & Housing Finance Limited and Dewan Housing Finance Corporation Limited (DHFL)) is a non-banking financial company (NBFC–ICC) regulated by the Reserve Bank of India. It is a wholly owned subs ...

(DHFL) took over the shareholding of ING in Vysya Bank Housing Finance Ltd and made it a subsidiary of DHFL and changed the name to DHFL Vysya Housing Finance Ltd (DVHFL).

References

{{Banking in India Defunct banks of India Banks based in Karnataka Banks established in the 1930s Banks disestablished in 2003 Banks established in 1930