Karur is a town situated on the bank of lovely riverAmaravathi. Here our beloved bank was born on 03-11-1926 with a modest paid up capital of Rs.71,000/-. Seven noble hearted selfless business people became the promoters of this bank. The bank started by merchants has developed and it is accredited with all the functions including Merchant Banking and Investment Treasury.

The first branch outside Karur was opened just four years after its inception (on 05-05-1930) at Tindivanam. Then eight more branches were opened before 1945. The bank was conferred with license (June 1958) by Reserve Bank of India. As a result, it was included in the Second Schedule of the Reserve Bank of India Act and made as a Scheduled Commercial Bank (August 1958).

The bank took over nine banks, which merged into it as its branches. As a result of all this, the bank’s network of branches increased considerably. The expansion scheme touched other spheres from 1974. Branches were opened beyond Tamilnadu. viz., Andhra Pradesh, Gujarat, Haryana, Jharkand, Karnataka, Kerala, Madya Pradesh, Maharashtra, our national capital New Delhi, Orissa, Pondicherry, Uttarpradesh and West Bengal. As on date the bank is having 251 branches, 5 extension counters and 5 Satitilite Branches serving people all over the country. More than 70% of its branches are situated in rural and semi-urban areas.

The Bank has 8 divisional offices at Chennai, Bangalore, Coimbatore, Madurai, Karur, Salem, Hyderabad and Mumbai. The Bank celebrated its Silver Jubilee in 1951, Golden Jubilee in 1976, Diamond Jubilee in 1986 and its Platinum Jubilee in 2000.

The bank started Foreign Exchange business from the Golden Jubilee Year and now it has world-wide links through agency arrangements with 34 leading banks. The bank started its own Staff Training College at Karur on 26-03-1984. Simultaneously, it launched the publication of its Quarterly House Magazine ‘Lotus’. At present they have come out with a new informative magazine called ‘Corporate Communication’.

The bank, one of the oldest banking institution in India, has really come a long way. The bank has a charm and stamp of its own. It has a capital base of over Rs.48.77 crores spread over 44220 shareholders as at 31.03.2008, of which 79.86 % in demat form. The bank’s own Administrative Office building at Karur was opened on 03-11-1991 by Shri S.Venkitaramanan, the then governor of RBI. It has opened a new hostel for officers who are attending training at STC, Karur during 1999. A separate department for computer planning was established to make the branches computerized so as to cope up with the ongoing technological developments and to meet the competition from the new private sector banks.

This bank which has not got any scar under any circumstances because good seeds grows and also multiples.

HISTORY OF BRANCH EXPANSION

MILE STONES IN THE HISTORY OF LVB

• The Bank Started on 03-11-1926 at Karur.
• The First Branch at Tindivanam opened on 05-05-1930.
• First Bonus Shares issued in 1956.
• The Bank was conferred with licence in June 1958.
• The Bank become a Scheduled Commercial Bank inAuguest 1958 - R.B.I. included the Bank in its 'B' Schedule.
• Nine Small Banks were taken over between 1961 and 1965.
• Become a Multistate Bank by opening a branch in Karnataka - Jayanagar - Bangalore Branch opened on 09-08-1974.
• First Right Issue in 1974.
• Opened 100th Branch in 1975.
• Obtained Licence to deal in Forign Exchange 1976.
• Attained 'A' Class Status in 1977.
• Mechanisation introduced in Administrative Office in 1977.
• First Service Branch in Chennai on 01-11-1981.
• Bank's own Staff Training College started on 26-03-1984.
• House Magazine "Lotus" was started in 1984.
• First Divisional Office of the Bank in Chennai on 22-05-1986.
• ALPMs first introduced in Chennai Main branch in 1987.
• First Public Issue in 1988 and Listed with Madras Stock Exchange.
• New Admistrative Office Complex inagurated on 03-11-1991.
• Exclusive Department of Computerisation statrted in 1992.
• Co-Branded Credit Card Launched on 16-05-1994.
• First Currency chest opened in Salem on 26-05-1995.
• T.B.A. Introduced in 1995.
• First ATM of the Bank opened at Mumbai-Andheri Branch under S.P.N.S on 17-03-1997.
• 200th Branch opened on 27-03-1997.
• Domestic Treasurey Office opened in Mumbai on 04-07-1998.
• Tele-Banking Introduced in 1998 at Chennai - Mylapore Branch.
• Listed with National Stock Exchange in 2000.
• New In-House Software for TBA "LBS 2001" introduced in 2001.
• Core Banking introduced in 2004 at Chennai Branches.
• 100% of Branch Network brought under Core Banking as on 31-03-2008.
• Internet Banking "LVB inet" Banking launched on 09-08-2008.