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Bar News Acts League

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

Act ID: 1959

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

"An Act to provide for the establishment of subsidiary banks of the State Bank of India."

Table of Contents

71 Sections

Ch. IP

reliminary

S.2Definitions S.6Capital of subsidiary bank S.19[Omitted]

Ch. II

[CONSTITUTION OF NEW BANKS AND CHANGE OF NAME OF ANY SUBSIDIARY BANK] [Substituted by Act 56 of 1962, Section 3. for the former heading.]

S.3A[ Change of name of a subsidiary bank. [Inserted by Act 56 of 1962, Section 3]S.4New banks to be bodies corporate S.5Head office and branches of new banks S.7Issued Capital of new Banks S.8Reserve fund of the new banks S.9Transfer of shares of existing banks to State Bank S.10Transfer of undertaking of existing banks to new banks S.11Transfer of services of employees of existing banks S.12Special provision for transfer of foreign assets

Ch. IIICo

mpensation

S.13Compensation to share holders of existing banks other than the Bank of Patiala S.14Compensation payable by the State Bank in respect of the Bank of Patiala, [***] [Words "the Saurasthra bank" Omitted in marginal heading by Act No. 48 of 2009] and the Hyderabad Bank S.15Constitution of the Tribunal S.16Tribunal to have powers of a civil court S.17Procedure of the Tribunal

Ch. IVS

hares Of The Subsidiary Banks

S.18Transferability of shares S.20Shares to be approved securities S.21Register of shareholders S.21A[ Register of Beneficial owners. [Inserted by Depositories Related Laws (Amendment) Act (8 of 1997) S.7 (w.e.f. 15-1-97) ]S.22Trusts not to be entered on the register

Ch. VMa

nagement Of Subsidiary Banks

S.23Certain officers to vacate office S.24Management S.25Composition of the Board of Directors S.26Term of office of Directors S.27Disqualification for directorship S.28Vacation of office of Directors S.29[Managing director.] [Substituted by Act 48 of 1973, Section 21 for "general manager" (w.e.f. 1-7-1974)]S.30Remuneration of director S.31Removal from office of director S.32Appointment of another person for discharging the duties of managing director during his absence S.33Casual vacancies among directors S.34Meetings of the Board of Directors S.35Executive Committee and other committees S.35A[ Supersession of Board of Directors in certain cases. - (1) [Where the Central Government, on the recommendation of the Reserve Bank and in consultation with the State Bank] [New section inserted by Act 30 of 2007 (w.e.f. 18.6.2007).], is satisfied that in the public interest or for preventing the affairs of a subsidiary bank being conducted in a manner detrimental to the interest, of the depositors or the subsidiary bank or for securing the proper management of the subsidiary bank, it is necessary so to do, [the Central Government may] [Substituted by Act 17 of 2011.], for reasons to be recorded in writing, by order, supersede the Board of Directors of the subsidiary bank for a period not exceeding six months as may be specified in the order:

Ch. VIB

usiness Of Subsidiary Banks

S.36Subsidiary bank to act as agent of the State Bank S.36A[ Subsidiary bank to act as agent of the Reserve Bank. [Inserted by Act 1 of 1984, Section 49 (w.e.f. 15-2-1984)]S.37Other business which a subsidiary bank may transact S.38Acquisition of business of other banks S.38A[ Arrangement with subsidiary banks on appointment of directors to prevail. [Inserted by Act 1 of 1984, Section 50 (w.e.f. 15-2-1984)]

Ch. VIIA

ccounts And Audit

S.39Closing of annual accounts S.40Disposal of profits S.41Audit S.42Temporary provision regarding existing auditors S.43Returns to be furnished by a subsidiary bank S.44General meetings

Ch. VIIIMis

cellaneous

S.1A. The compensation to be given by the State Bank shall, in the case of the Hyderabad Bank, [or the Bank of Patiala] [Substituted for the words ", the Bank of Patiala or the Saurashtra Bank," by Act No. 48 of 2009], be an amount equal to the value of the assets of that bank as on the day immediately before the appointed day , computed in accordance with the provisions of Part I of this paragraph less the total amount of liabilities thereof computed in accordance with the provisions of Part II of this paragraph S.45Power to issue directions removing difficulties S.46Observers for existing banks [***] [Words in marginal heading "and the Saurashtra Bank" omitted by Act No. 48 of 2009]S.47Inspection S.48Cost of development programme S.49Special provision regarding existing officers and employees S.50Staff of a subsidiary bank S.50A[ Bonus. [Inserted by Act 64 of 1984, Section 3]S.51Establishment of pension and superannuation funds by subsidiary banks S.52Obligation as to fidelity and secrecy S.53Indemnity of directors S.54Defects in appointment or constitution not to invalidate acts or proceedings S.55Companies Act, 1956, and Banking Companies Act, 1949, not to apply to certain existing banks S.56Continuance of special provisions respecting recovery of loans and advances made by the Bank of Patiala [***] [Omitted in the marginal heading the words "and the State Bank of Saurashtra" by Act No. 48 of 2009]S.57Bar to liquidation of a subsidiary bank S.58Dissolution of existing banks S.59[ Construction of references to existing banks. [Substituted by Act 56 of 1962, Section 3, for s. 59 (w.e.f. 1-1-1963)]S.60Exercise of powers and functions on behalf of the Reserve Bank S.61Protection of action taken under Act S.62Power of Central Government to make rules S.63[ Power of subsidiary banks to make regulations. [Substituted by Act No. 17 of 2011.]S.64Amendment of certain enactments S.65Repeal and Saving

Ch. II

– LIABILITIES

S.3No separate compensation shall be payable for any profits or any dividend in respect of any period immediately proceeding the appointed day for which, in the ordinary course, profits would have been transferred or dividend declared after the appointed day