The Historical Development of Banks in India
i. Bank of Hindustan was the first bank in India established in 1770 and was closed in 1932.
ii. The General Bank of India was established in 1786 and was also liquidated in 1791.
ii. Bank of Calcutta was the first joint stock bank established in 1806. It was renamed as the Bank of Bengal in 1809.
iv. Bank of Bombay in 1840 and Bank of Madras in 1843 were established.“These banks are called Presidential Banks”(Bengal, Bombay and Madras only)
1881witnessed the birth of ‘Audh Bank’ , which was later renamed into Punjab National Bank in 1894 (19-05-1894).
These Presidential Banks were amalgamated into the Imperial Bank of India on 27 January 1921. It confined its operations to the urban sector and rural sector was completely neglected in those days. Therefore, after Independence, an Act was passed in Parliament to take over the Imperial Bank of India by the Government and State Bank of India came into being on July 1, 1955.