History
The bank originated as the central bank of the erstwhile Nizam state under the name, Hyderabad State Bank. It was established on 8 August 1941 under the Hyderabad State Bank Act, 1941, during the reign of the last Nizam of Hyderabad, Mir Osman Ali Khan. The bank managed the Osmania Sicca, the currency of Hyderabad state, which covered the present-day Telangana region of Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra. (At the time a number of the princely states had their own currencies.) The bank also carried out commercial banking. The Bank opened its first branch at Gunfoundry, Hyderabad on 5 April 1942. After Partition, on 17 September 1948 the Indian Army conducted Operation Polo, a “police action” that annexed Hyderabad to India.
In 1953, the bank absorbed, by merger, the Mercantile Bank of Hyderabad, which Raja Pannalal Pitti had founded in 1935. (Other accounts give year of founding as 1946 and that of merger as 1952). In the same year, the Bank started conducting government and Treasury business as agent for the Reserve Bank of India.
In 1956 the Reserve Bank of India took over the bank as its first subsidiary and renamed it State Bank of Hyderabad. The Subsidiary Banks Act was passed in 1959, so on 1 October 1959 it and the other banks of the princely states became subsidiaries of SBI.
Read more about this topic: State Bank Of Hyderabad
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