The Bank was registered as Bihar and Orissa Provincial Co-operative Bank on 16.03.1914 under Cooperative Societies Act II of 1912. Its registration no. is 267/1913-14. Initially the area of operation of the Bank was Bihar and Orissa both. After separation of Orissa in the year 1936-37 its area of operation was confined to Bihar .It was renamed as The Bihar State Co-operative Bank Ltd. in December 1950. After application of Banking Regulation Act 1949 on Co-operative Banks on 1st March 1966, this Bank was included in the second schedule of Reserve Bank of India in the month of July 1966. Earlier, The bank was doing trading business also, but later this business was transferred to Bihar State Co-operative Marketing Union after its establishment in the month of June 1958. 

The Founder Members of the Bank were as follows:
 

1.	Maharaja Bahadur Guru Mahadev Sharan Prasad Shahi (Hathua)
2.	Raja Bahadur Kritya Nand Sinha, (Banaili)
3.	Rai Bahadur Harihar Prasad Narayan Singh (Dumraon)
4.	Raja P.C. Lal (Purnea)

The Bank was established with an initial fund of about three lacs as detailed below:
 

1.	Share Capital	0.53 Lacs
2.	Reserves	0.01 Lacs
3.	Deposit	2.44 Lacs
4.	Working Capital	2.98 Lacs

Presently the Bank is doing its business through its 14 branches and 30 DCCBs affiliated to it. After bifurcation of Jharkhand from unified Bihar in the year 2000 its five branches are now located in Jharkhand state and 9 in Bihar State. Similarly, out of existing 30 DCCBs affiliated to it, 8 DCCBs are located in Jharkhand State and 22 DCCBs in Bihar State. Since the Jharkhand State Co-operative Bank has not yet been established and Assets and liabilities have not yet been bifurcated, the present area of operation of The Bank is Jharkhand and Bihar States both.

The Bank was earlier doing the lending business under Agriculture sector only. But after issuance of guidelines from NABARD regarding non-agriculture finance, the Bank started business under non-agriculture sector in the year 1990. Thus the Bank is presently lending in Agriculture as well as Non agriculture sector .

The Bank has increased its business substantially during last 90 years which is evident form the following data :
 

	1914-15	1919-20	1929-30	1939-40	1949-50	1959-60	1969-70	1979-80	1989-90	1999-00
Share Capital	0.53	1.17	5.77	5.84	4.15	44.56	118.74	237.25	1343.97	1735.74
Reserves	0.01	0.39	4.20	4.77	13.94	16.12	167.56	478.94	3199.71	22193.63
Deposits	2.44	7.39	67.63	51.63	60.70	314.92	670.10	3976.25	21590.43	47671.96
Borrowings	Nil	Nil	Nil	Nil	Nil	Nil	714.20	2074.34	21720.20	8482.24
Working Capital	2.98	8.95	77.63	92.76	319.97	494.93	1670.60	6766.78	52926.66	95798.92

As per available information Bank was running into profit since 1914 to 31.03.1997. However, after application of prudential norms on Co-operative Banks, this Bank incurred loss of Rs.14.06 crore, 49.98 crore and 68.81 crore during the year 1997-98, 1998-99 and 1999-2000 respectively. Thereafter the Bank has been running in profit from the year 2000-01. The financial position of the Bank from the year 2000-01 to 2003-04 is given below :

Bank has improved its operational efficiency during the last 2-3 years. The employees of the Bank are being sent to BIRD and other training institutions, for getting training. The bank has created a training centre at its own Head office also. This training centre is fully equipped with all latest infrastructure and technology.Some new recruitment on contractual basis has also been made. They have professional qualifications like MBA, MCA, BCA etc. to improve the operational efficiency.
 

Some other efforts have also been made by the Bank for improvement in the present efficiency of the bank
	Premises of Head Office as well as four branches namely Bankipur, Maurya Lok, New Sectt., and Nala Road have been renovated. Renovation of other branches is also under progress. The Bank is trying to bring paperless office culture in the Bank through computerisation.
	Full computerization for Bankipur, Maurya Lok, New Sectt. and Nala Road branches has already been done. Computerization of other branches is also under progress. The computerization of the functioning of Head office is also under process. Thus out of total 14 branches, 12 branches as well as Head Office will become fully computerized by the end of current year i.e. 2004-2005.
	The Apex Bank has also started Government Security trading to increase its profitability.
	The Bank has also taken Corporate agency of General as well as Life Insurance from New India Assurance Company and LIC of India respectively to improve its business and profitability.
Sl.No Particulars 31-03-2001 31-03-2002 31-03-2003 31-03-2004 1. Paid up Share Capital 19.95 20.04 20.31 18.62 2. Reserves & Fund 243.64 229.59 244.76 195.01 3. Deposits 570.94 664.86 730.33 751.36 4. Borrowings 109.65 110.70 101.59 69.23 5. Working Capital 1107.26 1237.00 1300.57 1210.89 6. Investments 344.96 389.72 506.21 524.93 7. Loans & Advancement 503.75 530.17 540.04 489.98 8. Profit during the year 9.40 1.14 1.26 114.02 Rs. in Crore

On perusal of the above data it appears that Bank has made a turnaround progress in the year 2003-04. The Bank earned a net profit of Rs. 114.02 crore in the year 2003-04. This could be achieved due to improvement in loan recovery during the year 2003-04. The percentage of ST loan recovery at the level of The Bihar State Co-operative Bank Ltd. which was 8.7 during the year 1999-00 has shot up to 51% during the year 2003-04. Due to record net profit of Rs. 114.02 crore during the year 2003-04. Bank wiped out its entire accumulated loss of Rs. 97.00 crore and converted its accumulated loss into accumulated profit of Rs. 17.00 crores. Due to good performance made during the year the negative networth of Rs. 44.79 crore as on 31.03.2002 of the Bank turned into positive networth of Rs. 21.85 crore as on 31.03.2004. Thus Bank is now complying with Section 11(1) of B.R. Act as on 31.03.2004.