Jul 1: State Bank Day

You might have seen front page advertisements by State Bank of India in today's major news papers across the country. State Bank celebrates State Bank Day by doing remarkable community service every year on 1st Jul, this year 14000 branches of SBI donated 140000 fans to the schools. So what is this State Bank Day?

Intention of forming State Bank of India post independence was to make the formal banking and financial service reach the every corner of the country. Though SBI has grown far bigger than any private profit making banks, its basic intention was social banking. Imperial Bank of India was functioning as commercial and as well as central bank during the period of British rule in India. But our leaders felt there should be our own, state owned banking institution to make the financial services reach the every corner of the country. In the year 1955 Reserve Bank of India acquired the central bank functioning from Imperial Bank. Similarly to perform the commercial bank functioning the Imperial Bank of India was renamed as State Bank of India.

This major break through in the Indian banking industry was started with an parliament act in the year 1955. State Bank of India was given legal recognition by the provisions of the State Bank of India Act of 1955 which came into force from 1 July 1955. This parliament act enabled SBI to be considered as 'state' and the employees to be 'public servant' giving more responsibility in making the banking service reach the public. On that day SBI had 480 branches. Immediate requirement was to expand its presence to make reach banking service to every citizen. Now State Bank controls nearly quarter of the banking business in the country.

So the day on which the new era of the Banking Industry in India has started i.e. July 1st is celebrated by State Bank of India and its subsidiaries as State Bank Day.