State Bank of India(redirected from History of banking in India)
State Bank of India
the largest commercial bank of India. Founded in 1955 by way of reorganization of the Imperial Bank of India, which had been under control of English capital until it was nationalized through purchase of its shares. Ten state banks of the state governments were also incorporated. The paid-in capital of the bank amounted to 56 million rupees in 1969, of which 90 percent belonged to the Reserve Bank of India and the Ministry of Finance.
At the founding of the bank its basic task was to give credit support to agriculture and above all to credit cooperatives. The bank also grants credits to industry, commerce, and the government by way of investments, of which 87 percent consist of bonds of the central and state governments. Short-term loans to credit cooperatives, private industry, and commerce amount to 60 percent of the bank’s investments. The bank serves as agent for the Reserve Bank where the latter has no local office. By 1961 the bank had 900 branch offices; by 1970 there were 1,555 or over 3,000 including the offices of subsidiary banks. This is about one-third of the commercial bank offices in the country. More than half of the branch offices are situated in rural localities and partially urbanized settlements. In mid-1970 the balance total amounted to 13.5 billion rupees, deposits to 11.3 billion rupees, loans to 10.8 billion rupees, and investments to 3 billion rupees.
M. IU. BORTNIK