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The commercial Banks were operating for the years, but it was being felt that these banks were not paying necessary head to the credit requirements of common masses. Further the commercial banks, were mainly concentrating their business in the urban area and the banking facilities to rural people were not available.
Consequently, the Co-operative Banks came into picture after 1904. Himachal Pradesh has the distinction of having first Coop. Society Registered in India. Cooperative were primarily visualized as specialized agency for financing the credit requirement of rural people in the country particularly agriculture.
In Himachal Pradesh at the time of attaining independence of India, Mahasu Central Co-operative Bank, The Mandi Central Co-operative Bank Ltd. and The Chamba Central Co-operative Bank Ltd. were functioning to cater to the needs of farmer. In 1953 Himachal Pradesh State Co-operative Bank was established after amalgamating these three Central Co-operative Banks into it.
The Registration of Himachal Pradesh State Co-operative Bank was done in August, 1953, under the Co-operative Society Act, 1912 the bank started functioning on 15th March 1954.At that time, the State of Himachal Pradesh used to be the Union Territory and there were only 6 districts in the State. The bank started functioning as an Apex bank as well as Central financing agency under 2-tier system in 6 districts of the State.
In the year 1955 one Joint Stock Bank i.e., Bank of Sirmour was also merged in it. At present the H.P.S.C.B. is performing dual function viz. that of Apex Co-operative Bank in Himachal Pradesh to play lead role in development in Co-operative in the State and that of a Co-operative Bank in 6 districts viz. BILASPUR, CHAMBA, KINNAUR, MANDI, SHIMLA and SIRMOUR.
The Bank is extending banking facilities in 5 districts viz. KANGRA, KULLU, HAMIRPUR, LAHAUL & SPITI and UNA through our affiliated District Central Co-operative Banks, i.e. The Kangra Central Co-operative Bank and in district SOLAN through another affiliated District Central Co-operative Bank, The Jogindra Central Co-operative Bank as a District Central Co-operative Bank.
The Himachal Pradesh Co-operative Bank is serving the people of the State through a network of 190 branches and Extension Counter of which about 94% is in the rural areas of the State and one branch at New Subzi Mandi, Azadpur,New Delhi for the benefit horticulturists of the State.