The bank was registered on 7 September 1970 by Sh. Pitamber Singh (IAS), then Registrar of Co-operative Societies, Shimla, with its opening ceremony inaugurated by the late Raja Durga Singh, ruler of the former Baghat State. It came under the Banking Regulation Act via Letter No. ACD–BR-994/E-2(20)-70-72, dated 27 March 1972, and was registered permanently under RBI License No. UBD HP 1410 P on 9 May 1997.
Notably, this same pattern — supersession of the elected Board by an Administrator panel — is also the bank's current governance arrangement (see Board of Directors), suggesting a recurring regulatory history rather than an isolated event.
Building the Bank's Reputation
To compete with other financial institutions, the Board renovated and refurbished branches with proper architectural design, and purchased a dedicated building for the bank's use.
Following RBI's direction to offer all services at a single counter, the bank tied up with Kotak Mahindra Life Insurance Company Ltd. to provide life insurance services.
As banking continues to evolve, the bank has looked toward net banking, tele-banking, ATM networking and internet facilities, along with core banking solutions and centralised computerisation — while aiming to maintain a reputation for prompt, efficient customer service.
The bank also offers general insurance to customers through Future Generali General Insurance Company Ltd., bringing insurance services under one roof alongside its core banking offering.
