The Commercial Banks were operating for the years, but it was being felt that these banks were not paying necessary heed to the credit requirements of common masses. Further the commercial banks, were mainly concentrating their business in the urban areas and the banking facilities to rural people were not available.Consequently, the Co-operative Banks came into picture after 1904. Himachal Pradesh has the distinction of having first Co-operative Society registered in India. Co-operatives were primarily visualized as specialized agency for financing the credit requirement of rural people in the country particularly agriculture.In Himachal Pradesh at the time of attaining independence of India, The Mahasu Central Co-operative Bank Ltd., The Mandi Central Co-operative Bank Ltd. and The Chamba Central Co-operative Bank Ltd. were functioning to cater the needs of farmers. In 1953, The Himachal Pradesh State Co-operative Bank Ltd. was established after amalgamating these three Central Co-operative Banks. The Registration of The Himachal Pradesh State Co-operative Bank Ltd. was done in August, 1953, under the Co-operative Societies Act, 1912 and the bank started functioning on 15th March, 1954. At that time, the State of Himachal Pradesh used to be the Union Territory and there were only 6 districts in the State. The bank started functioning as an Apex Bank as well as central financing agency under 2-tier system in 6 districts of the State.In the year 1955, one Joint Stock Bank i.e., Bank of Sirmour was also merged in it. At present, The Himachal Pradesh State Co-operative Bank Ltd. is performing dual function viz. that of Apex Co-operative Bank in Himachal Pradesh to play lead role in development of Co-operative in the State and that of a Co-operative Bank in 6 districts viz. Bilaspur, Chamba, Kinnaur, Mandi, Shimla and Sirmour. The Bank is extending banking facilities in 5 districts viz. Kangra, Kullu, Hamirpur, Lahaul & Spiti and Una through our affiliated District Central Co-operative Bank, i.e. The Kangra Central Co-operative Bank Ltd. and in district Solan through another affiliated District Central Co-operative Bank, i.e. The Jogindra Central Co-operative Bank Ltd.The Himachal Pradesh State Co-operative Bank Ltd. is serving the people of the State through a network of 217 Branches and 23 Extension Counters, out of which about 94% are in rural areas.