Indian Bare Acts

THE STATE BANK OF HYDERABAD ACT, 1956

Title : THE STATE BANK OF HYDERABAD ACT, 1956

Year : 1956



1*[(1) The authorised capital of the Hyderabad Bank shall be one crore of rupees, divided into shares of one hundred rupees each.
(2) Notwithstanding anything contained in this section, the State Bank may, with the approval of the Reserve Bank, authorise the Hyderabad Bank to increase or reduce its authorised capital:

Provided that where the authorised capital is so increased, the shares issued shall be of the denomination specified in sub-section (1).

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1. Substituted by Art 38 of 1959, section 64 and Sch. III, for sections. 9 and 10 (w.e.f. 1-10-1959).

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(1) The issued capital of the Hyderabad Bank shall, on the day on which the amendments to this Act made by the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), take effect, be of such amount as the State Bank, with the approval of the Reserve Bank, may fix in this behalf, so however that the amount shall be so fixed as to consist only of fully paid-up shares of one hundred rupees each.

(2) All shares in the issued capital of the Hyderabad Bank shall, on that day, vest in the State Bank.

(3) Without prejudice to the provisions contained in sub-section (4), the Hyderabad Bank may, with the approval of the State Bank and the Reserve Bank, increase, from time to time, its issued capital and the capital so increased shall consist of fully paid-up shares to be issued in such manner as the State Bank may, with the approval of the Reserve Bank, direct:

Provided that the issued capital shall be so increased that at no time shall be State Bank hold less than fifty-five per cent, of the issued capital of the Hyderabad Bank.

(4) The State Bank shall, as soon as may, be, after the determination, if any, of the amount of compensation by the Tribunal under the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), consider whether any increase or reduction of the issued capital of the Hyderabad Bank as fixed under sub-section (1) by way of adjustment by transfer from, or to, the reserve of the Hyderabad Bank or in any other manner, is necessary, expedient or appropriate and may, thereafter, with the approval of the Reserve Bank, direct the Hyderabad Bank to increase or reduce its issued capital.]

Last updated on July, 2016

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