Bankapur was also famous as a Kalamukha center. Nagreshwar temple inscription talks about land grants given to a Kalamukha priest, Vimalashakti. Shakti in his name suggests that he might have belonged to the Shakti-parishad branch of Kalamukha sect. It is not strange to find Kalamukhas vestiges in Bankapur. Gadag and Haveri, both near Bankapur, were very important Kalamukha centres in the past. After the Rashtrakutas, Bankapur being situated under Panungal-500 (modern Hangal) came under the Hangal Kadamba chiefs. They ruled as the feudatory chiefs under the Western Chalukyas. After the fall of Western Chalukyas, it was ruled by Suenas and Hoysalas. After the Hoysalas, the town came under the Muslim rule before moving into the Vijayanagara kingdom.
In 1573, Ali Adil Shah of Bijapur moved against Dharwad and Bankapur. Bankapur, under his chief Velappa Ray, defended bravely the fort for one year and three months. But he had to surrender at last to Adil Shah as he did not get help from his masters. Firishtah mentions that Adil Shah destroyed a superb temple inside the fort and himself laid the first stone of a mosque which was built on temple’s foundation. In 1673, Abdul Karim Khan, of the line of the Savanur Nawabs, was appointed governor of the province of Bankapur under the patronage of Bijapur. In 1747, Nawab of Savanur made a treaty with the Marathas in which he gave up all his land keeping Bankapur, Hangal, Hubli to himself. In 1755, Savanur was besieged by French general Bussy. To save Savanur, the Nawab pledged the Bankapur fort to the Holkars. In 1776, Hyder Ali took over Bankapur and Savanur. In 1780, Tipu Sultan celebrated Muharram in Bankapur. In 1802, Bankapur was ceded to British by Peshwa. These were restored to him in 1803 in exchange of Bundelkhand.