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Sunday,
April 20, 2003 |
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Books |
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Tracing history of the SBI
B. S. Thaur
The Evolution of
the State Bank of India.
Sage Publications. Pages 674. Rs 1,100.
 THIS
book is the third volume of history of the State Bank of India. It
covers the Imperial Bank era which lasted from 1921-1955. Two
volumes, covering the period form 1876-1920, on Presidency Banks
were published in the eighties. Incidentally, the Imperial Bank era
was a crucial phase in Indian history. It was marked by nationalist
upsurge, great market depression, separation of Burma, formation of
the Reserve Bank of India, evolution of banking, World War II,
Independence, Partition and above all, a free nation with high
expectations from the banking system. All these events have been
suitably taken up in the book.
The State Bank's
history can be traced to banks of Bengal, Bombay and Madras called
the Presidency Banks, which were primarily created by the British to
serve the European Commerce. The amalgamation of these banks for the
formation of the Imperial Bank took place in 1921. Ultimately,
nationalisation of the Imperial Bank rechristened it as the State
Bank of India in 1955. The author states the nationalisation of the
bank has a long story. The demand for this was first echoed in 1948
in the Constituent Assembly. The members called the bank a bete
noire that deserved no mercy. An interesting passage from the
autobiography of C.D. Deshmukh, a former Governor of the RBI, as
quoted is as thus:
"As Governor of
the RBI, I had opposed earlier suggestions to nationalise the
Imperial Bank on the ground that against the economic environment as
it then was, such a measure was premature. In making my views felt I
had drawn support from Sardar Vallabhbhai Patel. Early during my
tenure as Finance Minister I had treated with scant regard similar
suggestion from my colleague T.T. Krishnamchari". Yet it was
the same man who four years later made the historical announcement
of nationalisation of the Imperial Bank.
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