Section 10:
Issued Capital.
(1) The issued capital of the Hyderabad Bank shall, on the day on which the
amendments to this Act made by the State Bank of India (Subsidiary Banks) Act, 1959, take effect , be of
such amount as the State Bank, with the approval of the Reserve Bank, may fix in this behalf, so however
that the amount shall be so fixed as to consist only of fully paid-up shares of one hundred rupees each.
1[(1A) Notwithstanding anything contained in sub-section (1), the issued capital of the Hyderabad
Bank, shall consist of such amount as the State Bank may, 2[in consultation with the Reserve Bank and
with the approval of the Central Government], fix, and shall be divided into fully paid-up shares of such
denomination in accordance with sub-section (2) of section 9.]
(2) All shares in the issued capital of the Hyderabad Bank shall, on that day, vest in the State Bank.
3[(3) The Hyderabad Bank may, from time to time, 2[with the approval of the State Bank and the
Central Government in consultation with the Reserve Bank], increase, whether by 4[public issue or rights
issue] or by preferential allotment or private placement in accordance with the procedure as may be
specified by regulations made under section 63 of the State Bank of India (Subsidiary Banks) Act, 1959
(38 of 1959), its issued capital by issue of equity or preference shares.
(3A) The issued capital of the Hyderabad Bank shall consist of equity shares or equity and preference
shares:
Provided that the issue of preference shares shall be in accordance with the guidelines framed by the
Reserve Bank specifying the class of preference shares, the extent of issue of each class of such
preference shares (whether perpetual or irredeemable or redeemable) and the terms and conditions subject
to which, each class of preference shares may be issued.
(3B) The Hyderabad Bank may, 2[with the approval of the State Bank and the Central Government in
consultation with the Reserve Bank], increase from time to time by way of issuing bonus shares to
existing equity shareholders, its issued capital in such manner as the State Bank, 5[in consultation with the
Reserve Bank and with the approval of the Central Government], direct.
(3C) No increase or reduction in the issued capital of the Hyderabad Bank shall be made in such a
manner that the State Bank holds at any time less than fifty-one per cent. of the issued capital consisting
of equity shares of the Hyderabad Bank.
(3D) The Hyderabad Bank may accept the money in respect of shares issued towards increase in
issued capital in instalments, make calls and forfeit unpaid shares and re-issue them, in the manner as may
be specified by regulations made under section 63 of the State Bank of India (Subsidiary Banks) Act,
1959 (38 of 1959).]
(4) The State Bank shall, as soon as may be after the determination, if any, of the amount of
compensation, by the Tribunal under the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959),
consider whether any increase or reduction of the issued capital of the Hyderabad Bank as fixed under
sub-section (1) by way of adjustment by transfer from, or to, the reserves of the Hyderabad Bank or in
any other manner, is necessary, expedient or appropriate and may, thereafter, with the approval of the
Reserve Bank, direct the Hyderabad Bank to increase or reduce its issued capital.]
Notes:
1. Ins. by Act 30 of 2007, s. 5 (w.e.f. 9-7-2007).
2. Subs. by Act 17 of 2011, s. 3, for "with the approval of the Reserve Bank" (w.e.f. 1-12-2011).
3. Subs. by Act 30 of 2007, s. 5, for sub-section (3) (w.e.f. 9-7-2007).
4. Subs. by Act 17 of 2011, s. 3, for "public issue" (w.e.f. 1-12-2011).
5. Subs. by s. 3, ibid., for "with the approval of the Reserve bank" (w.e.f. 1-12-2011).