BANKING AFFAIRS

Detailed explanation-1: -The Imperial Bank of India (IBI) was one of the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into the State Bank of India in 1955.

Detailed explanation-2: -The creation of the State Bank of India in July 1955 followed the passage of the Imperial Bank of India into state ownership. The nationalization of the Imperial Bank represented the culmination of a protracted debate on its role in independent India.

Detailed explanation-3: -State Bank of India was earlier known as the Imperial Bank of India. SBI was nationalized and renamed by the Indian government in 1955. The Imperial Bank was formed as a joint-stock bank in January 1921 by amalgamating the Presidency Banks of Bombay, Calcutta, and Madras.

Detailed explanation-4: -State Bank of India was incorporated on 01 July 1955. The Government of India nationalized the Imperial Bank of India in year 1955 with Reserve Bank of India taking a 60% stake and name was changed to State Bank of India.

Detailed explanation-5: -During the British rule in India, The East India Company had established three banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, which was called the “Imperial Bank of India.”