History of Imperial Bank of India and its Transformation

The question asks to identify which of the listed banks was previously known as the Imperial Bank of India. Understanding the history of banking in India is key to answering this question.

The Imperial Bank of India was a significant commercial bank during the British Raj. It was formed in 1921 by the amalgamation of three Presidency Banks:

• Bank of Calcutta (later Bank of Bengal)
• Bank of Bombay
• Bank of Madras

These Presidency Banks were among the oldest and largest banks in India at the time. The Imperial Bank of India served as a quasi-central bank before the establishment of the Reserve Bank of India (RBI) in 1935. It performed central banking functions like managing government accounts and acting as a banker to the government, in addition to its commercial banking role.

After India gained independence, the need for a bank that could significantly contribute to rural development and reach was felt. Based on the recommendations of the All India Rural Credit Survey Committee, the Imperial Bank of India was nationalized in 1955. Through the State Bank of India Act, 1955, the Imperial Bank of India was reconstituted as the State Bank of India.

Therefore, the bank that was formerly known as the Imperial Bank of India is the State Bank of India.

Let's look at the other options:

• Reserve Bank of India: This is the central bank of India, established in 1935 under the Reserve Bank of India Act, 1934. It was not the Imperial Bank of India, although the Imperial Bank initially acted as its agent in locations where RBI did not have offices.
• Punjab National Bank: Founded in 1894, it is one of the oldest banks in India that was established with Indian capital. It has a separate history from the Imperial Bank.
• Canara Bank: Founded in 1906, it is another major public sector bank with its own distinct history.
• Bank of Baroda: Founded in 1908, it also has a history separate from the Imperial Bank of India.

Based on the historical transformation, the Imperial Bank of India became the State Bank of India.