Before India gained independence, in a time when knowledge of cooperative movements was limited, the Poothadi Cooperative Credit Society was established on May 16, 1937, following the then-existing Madras Cooperative Act. Located five miles east of Panamaram in Poothadi Panchayat, Wayanad Taluk, Malabar District, the society eventually evolved into the Poothadi Multi Co-operative Society and later became the Poothadi Service Co-operative Bank. Standing strong at 83 years, the bank continues to be a beacon of support for the poor farmers of Poothadi Panchayat, operating as a Class 1 Special Grade Bank with 4 branches, 1 extension counter, and fertilizer and fair price stores.

As of March 31, 2020, the bank had 10,600 A-class members, with deposits amounting to ₹52.61 crores and loans totaling ₹50.48 crores. The bank's customers, primarily dependent on agriculture, have shown remarkable honesty in loan repayments, reflected in the low default rate of just 7%. Additionally, the bank operates group deposit schemes totaling ₹40 lakh.

The bank is committed to supporting its farmer members, preventing them from falling into the abyss of life's difficulties, especially from a failing agricultural sector. To this end, the bank provides financial assistance for various agricultural ventures and implements programs to offer technical knowledge for their success. Furthermore, the bank exemplifies its social responsibility by providing the highest number of loans in the district to Kudumbashree/Self-help groups. It has also successfully implemented the "Muttathe Mulla" loan scheme, initiated by the Kerala government to protect ordinary people from money lenders.

During natural disasters and the COVID-19 pandemic, the bank has focused on implementing all government-recommended schemes. Through the Care Home project, the bank constructed and handed over two houses. During the COVID-19 lockdown, it provided loans worth approximately ₹4 crores to Kudumbashree members under the Chief Minister's Helping Hand Loan Scheme. The bank also provided essential goods at subsidized rates through its Neethi Store and offered support to its members through the COVID-19 Survival Plan. It contributed ₹2 crore to a consortium established for distributing social pensions, delivering service pensions to about 2,800 people in Poothadi Panchayat.

To keep up with the changing times in the banking sector and to provide more convenience to its customers, the bank operates with core banking facilities such as CTS/NEFT/RTGS, ATM, and SMS alert services. The bank continues to steer critical operations within its operational area, progressing in alignment with the needs of ordinary people.