Social Banking: State Bank of India; Twenty-Ninth Report of Estimates Committee 1985-86 Eighth Lok Sabha, Lok Sabha Secretariat, New Delhi,
IN the mid 50s the Imperial Bank of India was taken over by the government of India. The bank was redesignated as State Bank of India with the obvious purpose of building the banking infrastructure tuned to the developmental needs of a planned economy. This was the first significant step in aligning banking institutions with national development priorities and goals. However even after that the required transformation of banking institutions in conformity with the national goals and priorities did not take place. The Social Control Act in the late 60s and the creation of the national credit council did not significantly help in channelising bank funds to desirable sectors for planned growth. During this period adequate banking infrastructures in rural and semi-urban areas were not created. After nationalisation of 14 major commercial banks in July 1969, a big push was given by the policy makers towards expansion of banking activities. Banks were declared as instruments of development. We noticed rapid expansion of bank branch network into rural areas and expansion of bank credit to agriculture and related activities. Certain desired economic activities were declared priority sectors as far as the flow of bank credit was concerned. In this initial phase of big push, the word 'social banking
