Overview
The State Bank of Hyderabad (SBH) was a public sector bank in India, headquartered in Hyderabad, Telangana. It was one of the five associate banks of the State Bank of India (SBI) and traced its origins to the princely state of Hyderabad under the Nizam. On 1 April 2017, SBH was merged with the State Bank of India along with the other associate banks.
Key facts
| Name | State Bank of Hyderabad |
|---|---|
| Type | Public sector bank (associate bank of SBI) |
| Predecessor | Hyderabad State Bank |
| Founded | 8 August 1941 (as Hyderabad State Bank) |
| Headquarters | Hyderabad, Telangana, India |
| Parent | State Bank of India |
| Merged into SBI | 1 April 2017 |
Background
The bank was established as the Hyderabad State Bank under a firman of the seventh Nizam of Hyderabad, Mir Osman Ali Khan. It was created to function as the central bank of the princely state of Hyderabad, managing the Osmania Sicca, the currency then in circulation in the state, and to support trade and agricultural credit.
After the integration of Hyderabad State into the Indian Union and the eventual reorganisation of states, the bank's central banking functions were transferred to the Reserve Bank of India. It was subsequently reconstituted as a commercial bank.
History and timeline
- 1941: Established as the Hyderabad State Bank, the central bank of the Nizam's dominions.
- 1953: Took over the assets and liabilities of the Mercantile Bank of Hyderabad.
- 1956: Became a subsidiary of the State Bank of India under the State Bank of India (Subsidiary Banks) Act, 1959, and was renamed the State Bank of Hyderabad.
- 2017: Merged with the State Bank of India on 1 April 2017, along with the other associate banks (State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore) and the Bharatiya Mahila Bank.
Operations
As an associate bank of SBI, the State Bank of Hyderabad operated a network of branches across India, with a particularly strong presence in Telangana, Andhra Pradesh, Karnataka and Maharashtra. It offered the full range of commercial banking services, including retail banking, corporate banking, agricultural and rural credit, NRI services, treasury operations and government business. The bank acted as an agent of the Reserve Bank of India for transactions related to state government accounts in Telangana and Andhra Pradesh.
Merger with State Bank of India
The Union Cabinet approved the merger of SBI's associate banks with the parent in 2017 as part of a consolidation drive in Indian public sector banking. The merger came into effect on 1 April 2017. Following the merger, the branches, employees, deposits and advances of SBH were absorbed into SBI, and the State Bank of Hyderabad ceased to exist as a separate legal entity. SBI became one of the largest banks in the world by branch network as a result of the consolidation.
Significance
The State Bank of Hyderabad held historical significance as one of the few Indian banks with origins as a princely state's central bank. For decades it played a major role in financing agriculture, small industries and government operations in the Telugu-speaking regions, and contributed to the spread of formal banking in the Deccan. Its merger marked the end of a banking institution with a continuous history of more than seven decades.
Related topics
- State Bank of India
- State Bank of Bikaner and Jaipur
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Travancore
- Bharatiya Mahila Bank
- Hyderabad State
- Mir Osman Ali Khan
- Reserve Bank of India
- Banking in India
References
- Wikidata entry: Q3764985
- State Bank of India (Subsidiary Banks) Act, 1959, Government of India.
- Reserve Bank of India, notifications on the merger of associate banks with SBI, 2017.