The Punjab State Co-operative Agricultural Development Bank Limited, which was previously known as The Punjab State Co-operative Land Mortgage Bank Ltd., was registered on 26.02.1958, under the Cooperative Societies Act basically with the object to grant long term loans to the owners of land or other immovable property so as to enable them to discharge their debts, to carry out Agricultural improvements, to acquire land for the formation of economic holdings and other purposes, thereby to promote thrift and self help among them.
At the initial stage, the Bank had started functioning through the Central Cooperative Banks, by appointing them as its Agents. The Agency system was discontinued in the year 1962 when 14 Primary Cooperative Land Mortgage Banks , now known as Primary Cooperative Agricultural Development Banks came into existence and were affiliated to the then-The Punjab State Co-operative Agricultural Development Bank, for the purpose of advancing long term loans to the farmers in the State.
The long term structure in the Punjab State, as such, is a Federal Structure with Punjab State Cooperative Agricultural Development Bank (in short, SADB) as an Apex Institution with Primary Cooperative Agricultural Development Banks as its members (in short, PADB). At present, the number of the Primary Cooperative Agricultural Development Banks in the State is 89, besides two other members i.e. Punjab State Electricity Board and Punjab State Tubewell Corporation. Each PADB, while seeking membership to the SADB is required to purchase atleast, one share of the value of Rs. 1000/- and pay Rs. 1000/- as Admission Fee.
ADVANCEMENT OF LOAN
Initially the Bank started advancing loans for the purpose of Redemption and Purchase of land so as to make the land holdings economically viable. After sometime, the Bank also started providing loans for the improvement of Banjar, Alkaline and Saline lands. Thereafter, the Bank played a substantial role in the mechanisation of farming in the State by advancing loans for the purchase of Tractors, Agricultural Implements and installation of Tubewells etc. The substantial contribution of this Bank in ushering in Green Revolution in the State, has always been considered significant. After the Green Revolution, the Bank played meaningful role for the diversification of agriculture loan by providing loans to the farmers for the various allied agricultural activities like Dairy, Poultry, Fishery etc. Now, Punjab is the largest producer of milk and SADB has made a major contribution to this achievement. Today, every third Tubewell installed in the State is financed by this Bank. Similarly, every fourth tractor in the State is financed by this Bank. The Bank has contributed significantly in White Revolution and Blue Revolution by providing loans for the purposes of Dairy and Inland Fishery.