BMTC began with a legacy of loss. Back in 1997, it was formed after the bifurcation of Karnataka State Road Transportation Corporation (KSRTC) and gained an equity capital of Rs 64.59 crore (US $16 million), and an accumulated loss of Rs 72.68 crore (US $18 million). But the very next year, it was able to make a profit and has continued to do so ever since, resulting in an accumulated net worth of Rs 683.31 crore (US $170 million). Consistent profit on traffic revenue started from the year 2003-04.
BMTC’s origin goes back to 1940 when it was created as a private company called Bangalore Transport Company (BTC) with a fleet of just 98 buses serving the city. In 1956, the Government of Mysore took it over and renamed it the Bangalore Transportation Service (BTS), which extended its service to a 16 km radius around the city. BTS was recognised as an independent unit under KSRTC in 1993 and in 1997 got separated from KSRTC and was re-born as BMTC. Part of the success of BMTC lies in its ability to offer innovative and tailor-made branded services to its customers, creating brand loyalty and a sense of belonging among its patrons. Pushpak was the beginning of the initiative and at present BMTC boasts of services like Metro, Grid, Passes Special, Ladies Special, Hospital Special and Mall Special.
To cater to different economic sections of society it has a variety of rolling stock such as Ordinary, Pushpak and the world-class Vajra (Volvo) services. This initiative was aimed at reducing personalised mode of transport and encouraging public transport, contributing directly to traffic and air quality improvement in the city. The introduction of more comfortable and better designed passenger/environment friendly buses has received whole-hearted support and encouragement from the public, helped BMTC grow faster than any other city public transport in India and made it profitable too. BMTC has one of the most successful commuter pass systems, with a patronage of more than half a million. The modest pricing and the services made available under it is the central feature of its stupendous success. Seven additional benefits including automatic travel insurance and medical reimbursements are offered to pass users as a bonus under an umbrella called rainbow benefits.