Inspired by the clarion call for self reliance given by National leaders in the pre-independence era, a group of patriotic, eminent personalities  from various walks of life came together to launch a crusade for economic independence.  On the then scenario of industrialist owned banks catering  to the needs of the rich and realising the limitations of co-operative societies  and co-operative banks, it was decided to establish a commercial bank with the avowed  objective of meeting the needs of the low and middle income segment of the society engaged in trade and commerce.  Motivated by the driving force of Shri. Babgonda Bhujgonda Patil, a distinguished Advocate of Sangli and  Shri. Gangaram Siddhappa Chougule, a renowned merchant of Kolhapur,   ' THE RATNAKAR BANK LTD.,' was born on 6th, August 1943. “Ratnakar” means an ocean, a treasure house of jewels.

In a short span of just 16 years, The Reserve Bank of India conferred the status of SCHEDULED BANK on THE RATNAKAR BANK LTD., in 1959.  The Bank, by its conscious decision of serving, basically, Kolhapur and Sangli districts, has in the past preferred to grow into an institution of immense internal strength in preference to size. Now, in keeping with the present day challenges the Bank has embarked on a modernisation and expansion programme with the objective of consolidating its strengths by achieving recognition for its development in size, as well.