Merchants Liberal Co-op Society Niyamita Gadag was the dream come true of Late. Chanabasappa Virupakshappa Katti and Late. Basavanneppa Gurappa Angadi of Gadag in 20-04-1965 in Gadag District, which is known for building the first cooperative society in Asia in the co-operative arena. These two great men are individually known in the business area not only to carry on their personal business, but also to realize the economic and financial hardships experienced by the small businessmen and in that direction they should continue, with the cooperation of like-minded friends under the several objectives of business development with financial strength. From 01-07-1965 he gave life to his dream. As a result Merchants Liberal Co-op Society Niyamita Gadag was started on the 1st floor of Vitthal Mandir in Gadag with only 101 members and a share capital of only Rs.5,000/-. Veerappa G Mantur served as the first manager.
With the great interest of the founders, the encouragement of the board of directors, the encouragement of the shareholders, the cooperation of the depositors and the full support of the customers, this organization achieved tremendous progress in just ten years. As a result, it was converted into The Merchants Liberal Co-op Bank Ltd., Gadag from April 1, 1976 in the orbit of the Reserve Bank of India and the bank has never looked back since then. Since then, the bank's operations have progressed year by year by making strides, which is the speciality of this bank. Keeping in view the large shareholding, credit facility for medium and small businessmen in priority sectors, the Reserve Bank of India granted a license to Bank on 10th December 1986. Thus it came under the Cooperative Societies Act and Reserve Bank of India laws.