Section 6
Authorised capital of new banks. Repealed
The State Bank of India (Subsidiary Banks) Act, 1959
About this Act
An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.
1[6. Authorised capital of new bank--(1) Subject to the provisions of this Act, the authorised
capital of every new bank shall be rupees five hundred crores.
(2) The authorised capital of every new bank shall be divided into shares of one hundred rupees each or of such denomination as the new bank may, with the approval of the State Bank, decide.
(3) Every new bank may issue the certificates of shares of equivalent values of such denomination as the new bank may, decide, with the approval of the State Bank, in accordance with the procedure as may be prescribed and every shareholder of the new bank shall be entitled to have the certificate of shares of equivalent value of such denomination.
(4) Notwithstanding anything contained in sub-section (1), the State Bank may, 6[in consultation with the Reserve Bank and with the approval of the Central Government], authorise a new bank to increase or reduce its authorised capital.]
(2) The authorised capital of every new bank shall be divided into shares of one hundred rupees each or of such denomination as the new bank may, with the approval of the State Bank, decide.
(3) Every new bank may issue the certificates of shares of equivalent values of such denomination as the new bank may, decide, with the approval of the State Bank, in accordance with the procedure as may be prescribed and every shareholder of the new bank shall be entitled to have the certificate of shares of equivalent value of such denomination.
(4) Notwithstanding anything contained in sub-section (1), the State Bank may, 6[in consultation with the Reserve Bank and with the approval of the Central Government], authorise a new bank to increase or reduce its authorised capital.]
Notes
1.Subs. by Act 30 of 2007, s. 6, for section 6 (w.e.f. 9-7-2007).
2. Subs. by Act 17 of 2011, s. 4, for "with the approval of the Reserve Bank" (w.e.f. 1-12-2011).
2. Subs. by Act 17 of 2011, s. 4, for "with the approval of the Reserve Bank" (w.e.f. 1-12-2011).