Sri valluri Rama Rao established the Co-operative Society with 20 social workers. Started the business on 02/08/1914 to provide credit facilities for urban people without profit motive.

The present building site was acquired in the year 1936 under the Chairmanship of Sri Nidamorthi Venkata Nagabhushanam.

Under the Chairmanship of Sir T. Narayana Murthy, P.V.Ratnam, M.Devendra Rao, Dr. Ch Ranga Rao, Dr K. Subba Rao, Dr.K. Kanchanamala, Sri Ambica Krishna and Sri Vetcha Panduranga Rao, the business of the Bank is developed day by day increase the deposits and Advances and earned profits also.

Under the Chairman ship of Dr Smt Koya Kanchanamala the permanent and present building was constructed in the year 1989.

Under the Chairman ship of Sri Ambica Prasad since 2001 to till date i.e., 2018 (elected four times continuously) the bank business has increased to the tune of 124 cr. and also opened New three branches in West Godavari District at R.R.Pet, Eluru 2013, Jangareddygudem and Palakollu towns in 2017. In the year 2014, hundred years function was celebrate under his leadership. The area of operation is allowed for Three district i.e., West Godavari District, Krishna and East Godvari Districts. Under the able Chairmanship of Sri Ambica Prasad along with Chief Executive Officer M. Atchuta Rao, The bank has applied for permission to RBI to establish new branches at Vijayawada and Rajahmundry.