Section 8(1) in The State Bank Of India (Subsidiary Banks) Act, 1959
(1)Every new bank shall establish a reserve fund which, subject to the provisions of sub-section (3) of section 7 and of sub-section (2) of this section, shall--(a)on the appointed day, consist of such sum as the State Bank, with the approval of the Reserve Bank, may determine; and(b)after the appointed day, consist of the sum aforesaid together with such further sums as may be transferred to the reserve fund by the new bank out of its annual net profits before declaring a dividend.
