Tumkur Grain Merchants Cooperative Bank LTD Loans Services

Tumkur Grain Merchants Co-operative Bank Limited is a leading Urban Co-operative Bank in the country, functioning with its Head Quarters at TUMKUR, The Bank is promoted by the Grain Merchants of Tumkur city and was established on 13.12.1963.

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Between 1950’s & 60’s Tumkur city has been developed as a major Business center of Karnataka State. In that period, the city has attracted so many Industries and Merchants class. In this substantial growth period the merchants of the city were facing the lack of proper Banking facilities and services, as in those days, a few nationalised Banks were functioning in the city and that too having lot of imbalances in their service to customers. By observing this pathetic condition, the leading merchants of Tumkur Sri AKA Parshwanath, Sri N R Jagadeesh, Sri T N Kempahonnaiah, Sri Gubbi Huchhappa and others discussed and decided to open an Urban Co-operative Bank in the city.

In the following years, the Bank has marked its substantial growth in the Co-operative Banking Sector along with its objectives. Since its inception, the Bank has been recording substantial growth each and every year. The Bank is also performing its social obligations. In the year 1987 the Bank has got its Licence from Reserve Bank of India, Mumbai.


Branch Expansion

In the year 1992, the Bank marked its growth and stability by opening its First Branch at SS Puram, Tumkur and succeeded in its expansion programme. In the same scale of expansion, the Bank has opened its 2nd branch at Raghavendra Nagar, Tumkur and 3rd branch at Sadashiva Nagar, Tumkur in the year 1994 & 1995 respectively. After the succession of Branch expansion programme in Tumkur City, Bank has decided to expand its operation beyond Tumkur City. As a result, 4th branch at Tiptur and 5th branch at Sira were opened in the year 1995 and 1997 respectively. Following in 1998, APMC Yard Branch has been opened at APMC Yard, Tumkur in its own Building, which was built with a beautiful structure. This branch has opened mainly for the purpose of fulfilling the Banking facility requirements to the Merchants and the public visiting the APMC Yard.

In the year 1998, the Bank has expanded its area of operation to Bangalore Urban, Bangalore Rural, Mysore and Chamarajanagar Districts by modifying its Byelaws. As a result, the Bank got permission from the Reserve Bank of India to open 3 branches at Bangalore city and one Branch at Mysore city. With that, the Bank has opened its 8th Branch at Rajaji Nagar, Bangalore on 15.07.1999 and 9th Branch at Mysore on 25.11.1999. On 12.02.2001, Bank opened its 10th and 11th Branches at Basaveshwaranagar and Jayanagar, respectively at Bangalore city, on 20th August 2004 opened its 12th Branch at Indiranagar, 13th Branch at RT Nagar Bangalore has opened on 8th Nov 2009 Bank, 14th Branch at Chitradurga on 3rd Dec 2010 and 15th branch at Kuvempu Nagar, Mysore 0n 27th Nov 2011, 16th branch at Hassan 0n 27th Jan 2012, 17th branch at HSR Layout on 27th Feb 2012, 18th branch at Marathahalli on 25th Mar 2012 and in the Financial Year 2013-14 Bank has opened its 19th & 20th Branches at J P Nagar & Yelahanka in Bengaluru on 23rd Oct 2013 & 29th Nov 2013 respectively. Branches have added feathers to its network.

Areas of Operation

The areas of operation are confined to


1. Tumkur District
2. Bangalore Urban and Rural District
3. Mysore District
4. Chamarajanagara
5. Ramanagara
6. Chikkaballapura
7. Kolar
8. Hassan
9. Mandya
10. Chitradurga.

Loans and Advances

The Borrowers are the Heart of every Bank. They are the key persons to generate the profit of the Bank.

Bank is offering following types of Loan Schemes

Joint Loan & Installment Joint Loan
Joint Loan & Installment Joint Loan will be given to only members of the Bank, with a surety of another member. A member can get this loan only up to 5 times of his Share Certificate amount, with a maximum limit of Rs.25,000.00. The tenure of this loan is 3 Months for the Joint Loan & 10 equal installments for the Installment Joint Loan.

NSC & LIC Bond Loan
Any person holding NSC Bonds and or LIC Certificates can avail of this loan by pledging the Bonds, upto 80% on the face value of the Bond and tenure of this Loan is 12 Months.

Shares & Debentures Loan
Any person holding Bank’s approved Shares and Debentures of Public Sector companies can avail of this loan, by pledging the Share certificates and tenure of this Loan is 12 Months.

Gold Loan
To avail this loan the borrower has to pledge his gold ornaments to the Bank and the tenure of this Loan is 12 Months.

Pledge Loan
This loan will be given by pledging the goods and stocks of the borrower, which are related to his trade/business. Goods will be stored in godowns, under the custody of the Bank and the tenure of this Loan is 3 months.

Loan on Mortgage of Property
This loan will be given for the purpose of the business by mortgaging the immovable property of the borrower after considering security, repayment capacity, credit worthiness and fulfilling documentation procedures and maximum tenure of this Loan is 180 months.

Rental Discounting Scheme

Hypothecation Loan for Vehicles
Hypothecation Loan will be sanctioned to purchase a new or an old vehicle, by hypothecating the same for the personal or commercial use and the maximum tenure is 60 months.

Consumable Article Loan
The Bank is also sanctioning the loan for purchase of new Consumable or Household articles and the maximum tenure of this Loan is 36 Months..

Housing Loan
The Bank is sanctioning loans to build a house for the purpose of residence and maximum tenure of this Loan is 180 Months

Cash Credit Loan & Overdraft Loan Account
The Bank is also giving advances to traders and business class in the form of Cash Credit/Overdraft Facility to their running account maintained with the Bank. This loan will be given to meet the working capital needs of the trades, on security of Stocks & the Immovable property. This facility will be sanctioned after considering the working capital requirement and the security and also the transactions made in their accounts. The tenure of this facility will be given for a period of 1 Year and the borrower has to renew this facility every year if the transactions are satisfactory to the bank. Interest is calculated for the amount of debit balance in the account for every day and charged on every month.

Bills Discounting
Bank is discounting the cheques issued by the reputed corporates/organisations in favour of the account holder of the bank. This facility is given only to the reputed customers of the bank. To avail this facility, the customer should have to get prior sanction from the Bank for a limited amount. In this case, the Bank is discounting the cheques presented in the clearing.


Tumkur Grain Merchants Co-operative Bank Limited is a leading Urban Co-operative Bank in the State, functioning with its Head Office at TUMKUR,. The Bank is promoted by the Grain Merchants of Tumkur city and was established in the Year 13.12.1963

The TGMC bank was incorporated on 16.09.1963 by registering at Mysore, State Co-operative registrar office with a register No: Of 270 with 275 members and authorized capital of Rs.5.00 lakhs. In the beginning years, TGMC Bank carried out its banking operation under the guidance of Bangalore Grain Merchant Co-operative Bank Limited.

Shri. A.K. Parshwanath is founder chairman of the TGMC bank. On 02.10.1963 election was held for board of management and 12 directors were elected. Bank has made considerable progress between 1963 and till now, when there were only 256 member having Share capital of 1,35,000. Since then, there is considerable increase of members joining the bank. Now it has Over 11885 Members. Bank celebrated its 50th Anniversary in 2013.

TGMC Bank is the first fully computerized Bank in Tumkur and Bank is offering good services to its customers and Bank is increasing its profit over the years


Sri. A.K.Parshwanatha (President)
Sri. Gubbi Huchappa (Vice- President)
Sri. D.S. Kantharajaiah (Treasurer)

Sri T S Siddappa (Secretary)
Sri. N.R.Jagadish (Joint Secretary)
P.G.Srinivas Setty
T.N.Kempu Honnayya

The Financial position of the Bank as at the end of first year was as under 31-03-1964.

Particulars Amount (Rs.)
No. of Members 257
Share Capital 1,35,400.00
Deposits 1,24,599.69
Borrowings 86,584.23
Loans & Advances 5,45,344.29
Investment 25,000.00
Net Profit 967.19