Payyanur  Co-operative credit society was formed by prominent freedom figheters and their associates in and arround payyanur with an aim to help poor public and farmers who were striving with poverty and unemployment, during early years of post independance period. Prominent freedom fighters C H Govindan Nambiar, A K Kunhiramapoduval, K P Kunhiramapoduval, Kannoth Kunhiraman Nair and N Raghavashenoy were in the forefront. Atfirst it was named as ‘payyanur Co-operative Credict Society Limited’ and was registered on 01-07-1949. First meeting held at mission school presided over by C. H. Govindhan Nambiar selected the office bearers as N. Raghavashenoy (president) C. H. Govindhan Nambiar (secretary) Kannoth Kunhiraman Nair (joint secretary) K. P. Kunhiramapoduval, A. K. Kunhiramapoduval, C. V. Kelu, Kaliyanthil kunhiramapoduval (Directors). This committee enrolled new members and started activities of the society.

First General body meeting held at payyanur Co-operative store building on 01-06-1951, elected a seven member Director Board as A.K. Kunhiramapoduval (president) M. Sankaran Adiyodi (Hon. secretary) N. Raghavashenoy, K. P. Kunhiramapoduval, P.M. Abdu Rahiman Moulavi, K.V. Sekharapoduval, C.V. Kunhiraman (Directors).

Following A.K. Kunhirama Poduval, Kannoth Kunhiraman Nair, P.V. Balakrishnan, T.V. Narayanan, C.K. Sekharan Master, C. Janardhanan and T. Kumaran were the presidential post. T.C.V. Kunhirama Poduval and K. Kunhikanna Poduval served as Honorary secretary during starting years. Initially society was named as ‘Payyanur Co-op Urban Bank’ from 15-07-1953 and was known as ‘Payyanur Service Co-operative Bank’ since 1961. Bank is working as second class Bank since 01-07-1979, and first class Bank since 01-01-1982 and is accredited as class I special Grade since 03-07-1992. K. Kunhambu Poduval was the first paid secretary. Followed by A.P. Narayana Poduval, K.M. Narayanan and P. Krishnan. Director Board with Adv. Sasi Vattakkoval as president is governing the Bank now.
The has been declared as “Class I Super Grade Bank” by Registrar of Cooperative Society with effect from 1-April-2013.