The State Bank of India Act, 1955

(1) This Act may be called the State Bank of India Act, 1955. (2) It shall come into force on such date1 as the Central Government may, by notification in theOfficial Gazette, appoint.

In this Act, unless the context otherwise requires,-- (a) "appointed day" means the date on which this Act comes into force; (b) "Central Board" means the Central Board of Directors of the State Bank; 1[(bb) "chairman" means the chairman of the Central Board;] (c) "goods" includes bullion, wares and merchandise; (d) "Imperial Bank" means the Imperial Bank of India constituted under the Imperial Bank ofIndia Act, 1920 (47 of 1920); 1[(dd) Local Board means a Local Board constituted under section 21;] (e) "prescribed" means prescribed by regulations made under this Act; (f) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of IndiaAct, 1934 (2 of 1934); (g) "State Bank" means the State Bank of India constituted under this Act; 2* * * * * 3* * * * * 4[(j) "workman" has the meaning assigned to it in the Industrial Disputes Act, 1947 (14 of 1947).]

(1) A Bank to be called the State Bank of India shall beconstituted to carry on the business of banking and other business in accordance with the provisions ofthis Act and for the purpose of taking over the undertaking of the Imperial Bank. (2) The 1[Central Government], together with such other persons as may from time to time becomeshareholders in the State Bank in accordance with the provisions of this Act, shall, so long as they areshareholders in the State Bank, constitute a body corporate with perpetual succession and a common sealunder the name of the State Bank of India, and shall sue and be sued in that name. (3) The State Bank shall have power to acquire and hold property, whether movable or immovable,for the purposes for which it is constituted and to dispose of the same.

1[4. Authorised capital.--Subject to the provisions of this Act, the authorised capital of the StateBank shall be five thousand crores of rupees divided into five hundred crores of fully paid-up shares oftenrupees each: Provided that the Central Board may reduce the nominal or face value of the shares, and divide theauthorised capital into such denomination as it may decide with the approval of the Reserve Bank: Provided further that the Central Government may, in consultation with the Reserve Bank, increase orreduce the authorised capital so however that the shares in all cases shall be fully paid-up shares.]

(1) The issued capital of the State Bank shall, on the appointed day, be fivecrores, sixty-two lakhs and fifty thousand rupees divided into five lakhs, sixty-two thousand and fivehundred shares, all of which shall, on the appointed day, stand allotted to the Reserve Bank in lieu of theshares of the Imperial Bank 1[transferred to and vested in it under section 6]. 2[(2) The issued capital of the State Bank shall consist of equity shares or equity and preferenceshares: Provided that the issue of preference shares shall be in accordance with the guidelines framed by theReserve Bank specifying the class of preference shares, the extent of issue of each class of suchpreference shares (whether perpetual or irredeemable or redeemable) and the terms and conditions subjectto which, each class of preference shares may be issued: Provided further that the Central Board may from time to time increase, with the previous approval ofthe Reserve Bank and the Central Government, whether by public issue or rights issue or preferentialallotment or private placement, in accordance with the procedure as may be prescribed, the issued capitalby the issue of equity or preference shares: Provided also that the Central Government shall, at all times, hold not less than fifty-one per cent. ofthe issued capital consisting of equity shares of the State Bank.] (3) No increase in the issued capital beyond twelve crores and fifty lakhs of rupees shall be madeunder sub-section (2) without the previous sanction of the Central Government. 3[(4) Subject to the provisions contained in sub-section (2), the Central Board may increase from timeto time, by way of issuing bonus shares to existing equity shareholders, the issued capital in such manneras the Central Government may, after consultation with the Reserve Bank, direct. (5) The State Bank may, accept the money in respect of shares issued towards increase in the issuedcapital in instalments, make calls, forfeit unpaid shares and re-issue them, in such manner as may beprescribed.]