BANKING AFFAIRS

Detailed explanation-1: -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.”

Detailed explanation-2: -Detailed Solution. The 3 banks Bank of Bengal, the Bank of Bombay and Bank of Madras were merged in 1921 to form the “Imperial Bank of India”.

Detailed explanation-3: -In accordance with a law approved on Sep-tember 19, 1920, the Imperial Bank of India began operations on January 27 of this year. This bank represents a consolidation of the presidency banks of Bengal, Bombay, and Madras, which have been doing business in India since the beginning of the nineteenth century.

Detailed explanation-4: -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-5: -In 1809 it was re-named Bank of Bengal. Then in the 1840s the Bank of Bombay and Bank of Madras came up. While these three banks’ evolution was influenced by ideas generated by the great economic churning taking place in Europe in the 19th century, local needs and conditions in India played an important role too.