In 1970 it was felt that the people of Ahmednagar needed a co-operative bank to fulfill the needs and aspirations of the working class and the middle class of the city. Around the same time, similar institutions were taking shape in Pune and so an initiative was taken by people from teaching profession like Prof. Vivek Dadhe, Prof. Mukund Ghaisas, Prof. M. V. Ghaskadbi , Prof. Abdul Karim and prominent social workers like Adv. G. G. Khan, Smt. Mai Saptarshi, Smt. Kamalabai Ranade and some people belonging to various professions and business like Shri. Vasantrao Penta, Shri. Radhakisan Madhyan, Shri. Nisargand, Shri.Ramesh Bhalagat, Dr. J.C. Pardeshi and the veteran of the town Shri. Shridharpant Tamboli and others. In those days the entry point norms were collection of a minimum share capital of Rs. 1 lac and 1000 minimum number of members. It took almost one year to collect about Rs.90,000/- The remaining amout was contributed by some of the promoters. The face value of one share was Rs.100/- and a number of people completed that amount by contributing Rs.10/- per month for 10 months. The other formalities, particularly drafting and registration of bye-laws were completed by January 1971 and the process of obtaining license from Reserve Bank of India was initiated. Tremendous efforts were made to obtain it in time so that the opening of the bank could be made on 1st July 1971, which was in those days, the beginning of co-operative year.
The bank premises comprised of only two rooms of around 150 sq.ft. each in the then Lele Wada, in which was situated the famous Ram Mandir, at Navi Peth. Shri. Vilas Raut was the first Manager of the Bank, very ably supported by Shri. P.K.Mulay, the Ex-General Manager of Nagar Urban Bank. (then N.D.U.C.C.Bank). The first board was nominated for two years and its turn was extended by ¾ year. We are very very proud to state that it comprised of two expert directors, two mahila directors and a director representing the depositors. Under the bye-laws there were different directors according to the number of shares held by them. The first election took place in 1976. It introduced some new faces in the Board. Till 1983 the term of the Board was 3 years then on it was made 5 years.
The initial progress of the bank was slow and it took ten years to achieve a deposit base of Rs.1 Crore. The next landmark was the Silver Jubilee in 1996 when the Bank completed the target of Rs. 25 Crores. The Silver Jubilee was not performed in usual style of holding some function but by using the entire Silver Jubilee Fund of around Rs.60 lacs to issue bonus shares. The next perhaps the most important step was the construction of own premises in Navi Peth. It was completed in 1998 having practically 7 floors and the built-up area of around 10,000 sq.ft. The interior and the exterior of the premises were simply magnificently done with the help of Shri. Rajurkar and Mrs. Kulkarni, the interior designers and ceaseless efforts and contribution of Prof. Mukund Ghaisas. The building was named, “Sarvaarth”. The name was picked by Prof. Ghaisas from the famous sholka, “Om Sarva Mangal Mangalye Shivay Sarvaarth Sadhike Sharanye Tryambake Gauri Narayani Namostute” in Durga Saptshati. It was acclaimed as absolutely unique by the knowledgeable of the town. The exquisite interior became pathbreaking and made the Shahar Bank a pioneer in this facet of architecture. The praise showered on us by about 10,000 people who visited and practically declared open the premises, knew no bounds. This kind of opening was also unique. You have only to refer to our Annual 29th Report.
On 12th August 1999 the Bank commenced its operations in the new premises and we had the distinguished privilege of Shri Nana Patekar, one of the stalwarts of Marathi and Hindi Cinema to grace the function. The premises and the entire process of declaring it open gave us an unique identity in baking sector. The Bank completed deposit base of Rs. 100 Crores in 2002, Rs. 200 Crores in 2009 and should cross Rs. 240 Crores in 2010-11.
The Bank achieved a milestone development, when on 25th November 2007 the fully functional Core Banking Solution and two ATMs were inaugurated. The association in this regard with The Shamrao Vitthal Co-operative Bank Ltd, Mumbai is a landmark in the co-operative banking sector as it was the first of its kind.
The next important event in the lifetime of the bank was in 2009 when on 26th July 2009 the bank opened its first branch outside Ahmednagar District at Kothrud in Pune. It was followed by the opening of Pimpri Branch on 23rd Sept. 2010.
During all these years two luminaries of the political scene graced various occasions, twice each, Hon. Shri. Sharad Pawar and the great socialist leader, freedom fighter and the son of Ahmednagar Late Prof. Madhu Dandwate.