On July 1, 1906, philanthropist Ammembal Subba Rao Pai established the Canara Hindu Permanent Fund in Mangalore, India. Canara Bank made its first acquisition in 1961, when it purchased Bank of Kerala. This company was founded in September 1944 and had three branches at the time of its acquisition on May 20, 1961. Canara Bank's second acquisition was Seasia Midland Bank (Alleppey), which was founded on July 26, 1930 and had seven branches at the time of the takeover.