Section 13(9) in The State Bank Of India (Subsidiary Banks) Act, 1959
(9)A shareholder of an existing bank who has applied for shares in the capital of the corresponding new bank shall be allotted--(a)such number of shares, having such total face value as would bear to forty-five per cent. of the issued capital of the corresponding new bank the same proportion as the paid-up value of his shares in the capital of the existing bank in respect of which he is paid compensation bears to the total paid-up capital of that bank; and(b)if the total number of shares allotted under clause (a) to all applicants is less than forty-five per cent. of the issued capital of the corresponding new bank, such number of additional shares as the State Bank may deem fit having regard to the provisions of this Act, the circumstances of the case and the desirability of securing as wide a distribution of shares among as large a number of shareholders as possible.Explanation.--For the purpose of determining the number of shares under this sub-section fractions of a share shall be disregarded.
