History & Growth Journey
"Is there anything impossible, if the right persons join together and act at the appropriate time?" – Kural 483
The month of August is very significant in the annals of Indian History. It is equally significant in the annals of KVB Employees movement. It is a matter of immense pleasure to inform our members that our society is on the verge of completing 46 years of useful existence.The Society was registered under the State Cooperative Act on 23rd August 1980.
Every individual wishes that one shall not stand before anyone seeking alms. If needed, one shall be able to give the other. Workers of the world always desire that they too shall attain self-sufficiency and conduct struggles to achieve it. Yet, the financial independence eludes them. Circumstances force them to go to the moneylenders or others for loans. Our employees too were not an exception to this.
It was the desire and dream of many in our Bank after seeing the success of the Cooperative movement and how it helped the members, that we too should start our own Society. This wish remained unfilled until August 1980.
Yes, it is on 23.8.1980, the first step for the establishment of our KVB Employees Thrift and Cooperative Society was registered under the State Cooperative Act. The following persons joined to promote the same:
| Mr. J. Rajendran | Mr. S. Renganatha Babu | ||
| Mr. A V Padmanabha | Mr. R. Bhavani Shankar | ||
| Mr. V. Swaminathan | Mr. G. Ravindranath | ||
| Mr. M. Divakaran | Mr. R. Gopalakrishnan | ||
| Mr. K. Sathyamoorthy | Mr. L. Muthukrishnan |
The formation meeting was held in the premises of our then Sowcarpet branch and employees and officers working in Chennai supported it overwhelmingly. On the first day itself, 60 members joined the Society. This gave a lot of encouragement and confidence.
In the first year itself, there were 600 members in the society. It functioned in the premises of the Chennai Main branch for nearly 3 years. The Directors and well-wishers spared their evening hours every day to attend the society work. The selfless service of the society was such that it attracted the attention of all the employees and the membership grew to 1100 in 1985, 1541 in 1990, 1798 in 1995, and 2202 in 2000. At present, it has 4671 members with a paid up capital of Rs.17.87 crores compared to Rs.16527 only in August 1980. It gives us immense pleasure and pride to inform that the society membership comprises of not only award staff and officers but also Executives of the Bank. A true interpersonal bondage has been established regardless of the hierarchical positions. In the year 1983, the Society moved to a small rented room in Perumal Mudali Street and started functioning from there. Though the premises lacked even basic facilities, yet the work was carried with a lot of enthusiasm and dedication. The involvement was such that everyone treated it as his own venture and cooperated. The growth of the society impelled it to move to a new spacious rented flat in Thambu Chetty Street in the year 1985. It is in this year, we got ourselves registered under the Multi-State Act.
There was an unquenchable thirst to own a premises for the society. For the first time in the history of a Society, permission was granted for the purchase of plot and construction of our own premises by taking money from the Reserve fund. The site was purchased in the year 1999 and the present landmark building was declared open by the then Chairman of our Bank Sri A.D. Navaneethan on 19th May 2002 in the presence of the then ED and present Chairman Sri P.T. Kuppusamy, our beloved director Sri A.S. Janarthanan, Com.N. Sampath, President of our Tamilnadu Bank Employees' Federation Com.CH. Venkatachalam, General Secretary, AIBEA. This premises accommodates the Society Office, a meeting hall and a Guest house. Members hailing from different parts of the country and belonging to different banks/societies have utilized the guest house. The dream became a reality. This simple but elegant building has become a cynosure among the Societies run by bank employees. Many societies praised our efforts and sought our guidance for similar efforts.
As we all know, Chennai is now looked at for specialized and sophisticated medical treatment. Be it eye treatment, open heart surgery or kidney ailment, Chennai is the preferred place of many. But the absence of accommodation at a reasonable and affordable rent was a deterrent. Thanks to the establishment of our guest house, many of our members feel that their stay in Chennai will not pinch their purse and rather make it comfortable and homely. One of our members had to rush his child to Chennai for ear treatment. Before leaving for Chennai, they were very much worried about the cost of treatment and lodging. The moment they were sure of their accommodation in the guest house at a nominal rate, they felt very much relieved. They could attend to their child with less tension. At the time of leaving, they remarked that they stayed here as they used to stay in their mother-in-law's house.
Initially, the loan limit to members was Rs.3,000/-. In the last twenty five years, it has been revised several times and the present loan limit stands at Rs.10,00,000/-. The total amount of credit extended to members grew from Rs.24.78 lakhs in 1985 to Rs.121.26 crores in 2005. Now members of the society have got the confidence that they can meet their unforeseen financial strains by merely signing the application form without even affixing a revenue stamp and getting a loan of Rs.10 lakhs which none can get from any institution.
Besides the surety loan, a Special loan of Rs.50,000/- is also granted to members for the purchase of consumer durables at the rate of 10% p.a.
As a part of promoting thrift, members were required to pay Rs.900/- Substaff, // Rs.1300/- Clerk & Rs.2000/- Officers depending upon their official position towards Thrift deposit. This deposit that stood at Rs.8.81 lakhs in the year 1985 is having Rs.66.03 crores today. There are individuals who contribute more than the minimum prescribed limit. Interest at the rate of 9% is being paid for this deposit amount. This not only enables the members to save for future, but also provides the much needed finance for further lending to the members. This only confirms the golden saying that "small drops flood".
Not contented with mere lending of money and promoting thrift, the compassionate thinking of the Board of Directors spurred them to launch the Welfare fund in the year 1993 collecting a monthly sum of Rs.60/- from each member to provide relief to the family of the deceased members. At the time of launching of this scheme, this relief was pegged at Rs.10,000/- and now relief extended to the level of Rs.1,50,000/- is given.
The Society accepts Fixed Deposits from members offering the highest rate of interest. Our members have deposited Rs.23.91 crores as on date attracting interest at the rate of 8.70 % p.a.
Cooperative movement undoubtedly means sharing of the burden by the members. Yet if individuals giving surety for the loans granted are called upon to pay the amount in case of default in repayment, would cause enormous burden to the sureties. In order to provide relief in such contingencies, a Surety Relief Fund was floated in the year 2001. Each member contributes Rs.60.00 p.m. for this.
The desire that all Kayveebians should continue to remain in the fold of the Cooperative movement and derive the benefit prompted the Board of Directors to amend the bye law for the provision of nominal membership. The byelaw was amended in the year 2002 and subsequently in 2025 to provide B class membership to the retired persons.
While granting of loans, extension of welfare measures, provision of B class membership to retired persons are good deeds and are considered a part of its functioning, the fact that it has provided direct employment to 6 persons is a matter of great satisfaction. The employees are given wages and other service conditions on par with the employees of our Bank. i.e. A class salary, ex-gratia, other service conditions at par with our bank etc. This only shows our commitment and desire to be a model employer also and we shall not discriminate.
It is a matter of pride that the profit of the society that stood at Rs.1.21 lakhs in 1985 has grown to Rs.2.87 Crores in the year 2025. Dividend at the maximum rate has been paid all these years.
Bank employees are generally criticized for their stand on computerization. While computerization to supplement the human efforts is welcomed and adopted, efforts to supplant the labour through machines alone are opposed. In many work spots where unbridled computerization has taken place, more machines and few men are seen. This was the cause for our opposition to computerization. But bilateral discussions between bankers and unions have enabled 100% computerization of banking operations in 2002. Exchange of demand/collection schedule between the Society and bank is being carried out in floppies. Computerisation has enabled the society to ensure perfection in housekeeping, dispatch of annual statement of accounts to members at the beginning of the financial year itself.
It is pertinent to record here with immense sense of gratitude the support extended to us by the management of our Bank. When the no-objection letter was sought for starting the society, the Bank not only responded immediately but also assured its cooperation and support. True to that commitment, the bank permitted us to collect donations for the construction of this building. Whenever, refinance was sought for lending purpose, the administration unhesitatingly obliged us. The philanthropic mind of the administrators deserve all praise.
Similarly, the two Organisations namely Karur Vysya Bank Employees' Union and Karur Vysya Bank Officers' Association - the twin organisations working to promote and protect the welfare of the employees and officers of the bank - have been a good source of immense help and support. They have invested in our Fixed Deposit schemes which has reduced our need for refinance from Chennai Central Cooperative Bank.
It is necessary to record the guidance and support received by us from the Registrar of Coop. Societies, Chennai, New Delhi and the Chennai Central Cooperative Bank Ltd. The auditors who inspected the books of accounts of society awarded 'A' class certificate after every inspection.
The track record will be incomplete if we do not mention the supportive role of Sri N. Kalyanasundaram right from the inception. We place on record the invaluable services being rendered by him.
We will be failing in our duty if we do not record the support and encouragement received from Sri K. Ananthapadmanabhan, who had retired as a Deputy General Manager of our Bank.
We firmly believe that our task is incomplete and much more needs to be done. We are not still able to enroll all the employees of our Bank as members. Nearly 300 members are out of our fold. Though nonmembers may have reason for not joining the Society, yet we appeal to them to join the Society immediately so that we can proudly claim that all employees are members of the Society. Their contribution in the form of capital, thrift deposit and surplus deposit will enhance the Society's financial strength, and make the circle complete.
In the year 200 Silver Jubilee celebration was launched by our beloved director of KVB Sri M.K.Venkatesan Prof. Victor Louis Anduvan, a sociologist also participated in it and paid encorniums to us.
As a manifestation of our human thinking we extended financial assistance whenever natural calamities occurred.
A sizeable amount was donated to KVBOA Educational Trust and we will be carrying another commitment of Rs.40,000/- for the construction of class rooms for the school being run by the Panchayat Union of Chitlapakkam, Chennai - 600064.
We are completing our 26 years. The recent reports about Cooperative Banks and Societies do cause lot of concern to all. In fact, many have started cursing this movement. Many cooperative banks have been put under moratorium in Andhra, Gujarat, Maharashtra. But a review of our Society will not only silence such critics and nail bad reports but also give courage and confidence and make the members more committed. One or two isolated failures need not promote diffidence Unity means life. Our Society's performance bears ample testimony to prove the golden saying of the revolutionary poet Bharathi that "unitedly we prosper. It shall be our endeavour to further strengthen this movement.
A hind sight into the past gives us not only lot of satisfaction but also reminds us of the unfinished task and our social obligation. Lot needs to be done. As Thirukural says, “If the right persons join together and perform the work after deep analysis, there can be no impossible task”. (Kural 462).
We solicit the continued cooperation and support of members, our Bank, and the two Organisations- KVBEU and KVBOA for our endeavour.