Section 25(1) in The State Bank Of India (Subsidiary Banks) Act, 1959
(1)Subject to the provisions of sub-section (2), the Board of Directors of a subsidiary bank shall consist of the following:--(a)[ the Chairman for the time being of the State Bank, ex officio or an official of the State Bank or of the subsidiary bank nominated by him as Chairman, [in consultation with the Reserve Bank and with the approval of the Central Government] [Substituted by Act 30 of 2007 (w.e.f. 18.6.2007) ]](aa)[ the managing director appointed under sub-section (1) of section 29, or under section 32;] [Inserted by Act 48 of 1973, Section 28 (w.e.f. 1-7-1974)](b)[ one director, possessing necessary expertise and experience in the matters relating to regulation or supervision of commercial banks, [to be nominated by the Central Government on the recommendation of the Reserve Bank] [Substituted by Act 30 of 2007 (w.e.f. 18.6.2007) ]](c)not more than five directors to be nominated by the State Bank of whom not more than three shall be officers of that bank;[Provided that any nomination of a director made by the State Bank under this clause shall, except in so far as it relates to an office of that bank, be in consultation with the Central Government.] [Inserted by Act 66 of 1988, Section 18 (w.e.f. 30-12-1988)](ca)[ one director, from among the employees of the subsidiary bank, who are workmen, to be appointed by the Central Government in the manner provided in the rules made under this Act; [Inserted by Act 48 of 1973, Section 28 (w.e.f. 1-7-1974)](cb)one director, from among such of the employees of the subsidiary bank as are not workmen, to be appointed by the Central Government in the manner provided in the rules made under this Act;][(d) not more than three directors to be elected in the following manner, namely:- [Substituted by Act 30 of 2007 (w.e.f. 18.6.2007) ](i)if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than one per cent. of the total issued capital, and equal to or less than sixteen per cent. of such capital, one director to be elected, in the prescribed manner, by such shareholders and two directors shall be nominated by the State Bank, or(ii)if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than sixteen per cent. of the total issued capital and equal to or less than thirty-two per cent. of such capital, two directors to be elected in the prescribed manner by such shareholders and one director shall be nominated by the State Bank, or(iii)if the total amount of holdings of the shareholders (other than the State Bank) of a subsidiary bank is more than thirty-two per cent. of the total issued capital, all the three directors to be elected, in the prescribed manner, by such shareholders:Provided that in case, the total amount of holdings of the shareholders of a subsidiary bank (other than the State Bank) is not more than one per cent. of the total issued capital, all three directors shall be nominated by the State Bank and such directors shall, for the purposes of this Act, be deemed to be directors elected under this clause.Explanation. - For the purposes of this sub-section, the total amount of holdings of the shareholders (other than the State Bank) whose names are on the register of shareholders of the subsidiary bank three months before the date fixed for election of directors shall be taken into account](e)a director, if any to be nominated by the Central Government [* * * *] [Certain words omitted by Act 66 of 1988, Section 18 (w.e.f. 30-12-1988).]
