Act 38 of 1959

The State Bank of India (Subsidiary Banks) Act, 1959

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.

  • Ministry of Finance
  • Department of Financial Services
  • Enacted 1959-09-10
  • 75 sections
SectionTitle
1 Short title. RepealedRead
2 Definitions. RepealedRead
3 Establishment of new banks. RepealedRead
3A Change of name of a subsidiary bank. RepealedRead
4 New banks to be bodies corporate. RepealedRead
5 Head office and branches of new banks. RepealedRead
6 Authorised capital of new banks. RepealedRead
7 Issued capital of new banks. RepealedRead
8 Reserve fund of the new banks. RepealedRead
9 Transfer of shares of existing banks to State Bank. RepealedRead
10 Transfer of undertaking of existing banks to new banks. RepealedRead
11 Transfer of services of employees of existing banks. RepealedRead
12 Special provisions for transfer of foreign assets. RepealedRead
13 Compensation to shareholders of existing banks other than the Bank of Patiala. RepealedRead
14 Compensation payable by the State Bank in respect of the Bank of Patiala and the Hyderabad Bank. RepealedRead
15 Constitution of the Tribunal. RepealedRead
16 Tribunal to have powers of a civil court. RepealedRead
17 Procedure of the Tribunal. RepealedRead
18 Transferability of shares. RepealedRead
18A Right of registered shareholder to nominate. RepealedRead
19 Restriction on voting rights. RepealedRead
20 Shares to be approved securities. RepealedRead
21 Register of shareholders. RepealedRead
21A Register of beneficial owners. RepealedRead
22 Trusts not to be entered on the register. RepealedRead
23 Certain officers to vacate office. RepealedRead
24 Management. RepealedRead
25 Composition of the Board of Directors. RepealedRead
25A Fit and proper status of an elected director. RepealedRead
25B Power of Reserve Bank to appoint additional directors. RepealedRead
26 Term of office of directors. RepealedRead
27 Disqualification for directorship. RepealedRead
28 Vacation of office of directors. RepealedRead
29 Managing director. RepealedRead
30 Remuneration of directors. RepealedRead
31 Removal from office of director. RepealedRead
32 Appointment of another person for discharging the duties of managing director during his absence. RepealedRead
33 Casual vacancies among directors. RepealedRead
34 Meetings of the Board of Directors. RepealedRead
35 Executive committee and other committees. RepealedRead
35A Supersession of Board of Directors in certain cases. RepealedRead
36 Subsidiary bank to act as agent of the State Bank. RepealedRead
36A Subsidiary bank to act as agent of the Reserve Bank. RepealedRead
37 Other business which a subsidiary bank may transact. RepealedRead
38 Acquisition of business of other banks. RepealedRead
38A Arrangement with subsidiary banks on appointment of directors to prevail. RepealedRead
39 Closing of annual accounts. RepealedRead
40 Disposal of profits. RepealedRead
40A Transfer of unpaid or unclaimed dividend to unpaid dividend account. RepealedRead
41 Audit. RepealedRead
42 Temporary provision regarding existing auditors. RepealedRead
43 Returns to be furnished by a subsidiary bank. RepealedRead
44 General meetings. RepealedRead
45 Power to issue directions for removing difficulties. RepealedRead
46 Observers for existing banks. RepealedRead
47 Inspection. RepealedRead
48 Cost of development programme. RepealedRead
49 Special provision regarding existing officers and employees. RepealedRead
50 Staff of a subsidiary bank. RepealedRead
50A Bonus. RepealedRead
51 Establishment of pension and superannuation funds by subsidiary banks. RepealedRead
52 Obligation as to fidelity and secrecy. RepealedRead
53 Indemnity of directors. RepealedRead
54 Defects in appointment or constitution not to invalidate acts or proceedings. RepealedRead
55 Companies Act, 1956, and Banking Regulation Act, 1949, not to apply to certain existing banks. RepealedRead
56 Continuance of special provisions respecting recovery of loans and advances made by the Bank of Patiala. RepealedRead
57 Bar to liquidation of a subsidiary bank. RepealedRead
58 Dissolution of existing banks. RepealedRead
59 Construction of references to existing banks. RepealedRead
60 Exercise of powers and functions on behalf of the Reserve Bank. RepealedRead
61 Protection of action taken under Act. RepealedRead
62 Power of Central Government to make rules. RepealedRead
63 Power of subsidiary banks to make regulations. RepealedRead
64 Repealed. RepealedRead
65 Saving. RepealedRead
Scroll to Top