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[Cites 0, Cited by 4] [Entire Act]

Union of India - Section

Section 5 in The State Bank Of India (Subsidiary Banks) Act, 1959

5. Head office and branches of new banks.

(1)The head office of each of the new banks shall be at such place as the Central Government may, by notification in the Official Gazette, from time to time, specify.
(2)Every new bank shall maintain as its branches all branches of the corresponding bank in existence immediately before the appointed day, and shall not establish any new branch or discontinue any branch except in consultation with the State Bank and with the approval of the Reserve Bank.[6. Authorised capital of new bank. -
(1)Subject to the provisions of this Act, the authorised capital of every new bank shall be rupees five hundred crores.
(2)The authorised capital of every new bank shall be divided into shares of one hundred rupees each or of such denomination as the new bank may, with the approval of the State Bank, decide.
(3)Every new bank may issue the certificates of shares of equivalent values of such denomination as the new bank may, decide, with the approval of the State Bank, in accordance with the procedure as may be prescribed and every shareholder of the new bank shall be entitled to have the certificate of shares of equivalent value of such denomination.
(4)Notwithstanding anything contained in sub-section (1), the State Bank may, [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) ], authorise a new bank to increase or reduce its authorised capital]
Prior to substitution section 6 read as -6. Authorised capital of new banks.-(1) Subject to the provisions of this Act, the authorised capital of the State Bank of Mysore and the State Bank of Travancore shall be rupees two crores each, and the authorised capital of every other new bank shall be rupees one crore.(2) The authorised capital of every new bank shall be divided into shares of one hundred rupees each.(3) Notwithstanding anything contained in this section, the State Bank may, with the approval of the Reserve Bank, authorise a new 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 (2).