It was established in 2006 as a Scheduled Commercial Bank as per Regional Rural Banks Act of 1976 to provide banking facilities in Ananthapuram, Sri Sathya Sai, Annamayya, Kadapa, Kurnool, Nandyal, Tirupati, Nellore, Bapatla and Prakasam districts of Andhra Pradesh.

The bank caters to the financial needs of the rural poor in one of the most backward regions of Andhra Pradesh state.

[2] The Bank is headquartered at Kadapa[3] and presently its area of operation is extended to 10 districts of Andhra Pradesh state.

[3] Andhra Pragathi Grameena Bank was formed as per Regional Rural Banks Act 1976.The bank's operations are spread in 10 districts of Andhra Pradesh namely, Anantapur, Y. S. R (Kadapa), Kurnool, Nellore Prakasam Sri Sathya sai, Annamayya, Nandyal, Tirupati and Bapatla Districts with headquarters in Kadapa.

The bank had also introduced Electronic Know Your Customer (EKYC) facility and is working through 985 business correspondents in these places.