BANK OF INDIA Share price

INFORMATION ABOUT BANK OF INDIAINCORPORATION AND HISTORY OF THE BANKBank of India has been constituted through an Act ofParliament to carry on the business of banking and otherbusiness in accordance with the provisions of The BankingCompanies (Acquisition and Transfer of Undertakings) Act1970 and for the purpose of taking over of the undertakingof the Bank of India Ltd with effect from 19th July 1969.Chapter II (Section 5) of the Banking Companies(Acquisition and Transfer of Undertakings) Act 1970 statesthat the Bank shall carry on and transact the business ofbanking as defined in Clause (b) of Section 5 of theBanking Regulation Act 1949 (10 of 1949) and may be engagedin one or more of the other forms of business specified inSub-Section (1) of Section 6 of that Act.HISTORYThe Bank was incorporated on 6th September 1906 by a groupof eminent businessmen in Mumbai. It began with one officein Mumbai a paid up capital of Rs.50 lakh and employing 50people. The Bank has grown rapidly over the years to becomeone of the leading Indian banks. It was under privateownership until 1969 when it was nationalised along with 13other major banks. After nationalisation the Bank embarkedon a major expansion plan of increasing its branch networkin rural and semi-urban areas. As a result these types ofbranches currently constitute 71% of the total branches ascompared to 37% in 1969. The Bank''s association with Indiancapital markets goes back to 1921 when it entered into anagreement with the Stock Exchange Mumbai (BSE) to manageall of BSE''s clearing and settlement work. It is also oneof the first Indian banks to setup a Merchant Banking arm.Currently it has 3 subsidiaries involved in relatedfinancial activities. BOI Finance Ltd. is involved inMerchant Banking BOI Asset Management Company Ltd. inasset management of Mutual Fund and BOI Shareholding Ltd.in clearing and settlement. Thus Bank of India is a Bankwith a tradition of 90 years with group presence in severalspheres like Merchant Banking Housing Finance LeasingVenture Capital Credit Card Mutual Fund Stock Brokingetc.BUSINESS OF THE BANKSections 3(7) and 3 (5) of Chapter II of the BankingCompanies (Acquisition) Act 1970 provide that:Bank to act as Agent of Reserve Bank (Section 3 (7))(i) The Bank shall if so required by the Reserve Bank ofIndia act as agent of the Reserve Bank at all in Indiawhere it has a branch for:a) Paying receiving collecting and remitting moneybullion and securities on behalf of the Government of Indiab) Undertaking and transacting any other business which theReserve Bank may from time to tie entrust to it(ii) The terms and conditions on which any such agencybusiness shall be carried on by the corresponding new bankon behalf of the Reserve Bank shall be such as may beagreed upon.(iii) If no agreement can be reached on any matter referredto in Clause (ii) above or if a dispute arises between thecorresponding new bank and the Reserve Bank as to theinterpretation of any agreement between them the mattershall be referred to the Central Government and thedecision of the Central Government thereon shall befinal.(iv) The corresponding new bank may transact any businessor perform any function entrusted to it under Clause (i) byitself or through any agent approved by the Reserve Bank.OTHER BUSINESS WHICH THE BANK MAY UNDERTAKE (SECTION 3 (5))The Bank shall carry on and transact the business ofbanking as defined in Clause (b) of Section 5 of theBanking Regulation Act 1949 (10 of 1949) and may engagein [one or more of the other forms of business] specifiedin Sub-Section (1) of Section 6 of that Act.Clause (b)of Section 5 of the Banking Regulation Act 1949defines Banking as "the accepting for the purpose oflending or investment of deposits of money from thepublic repayable on demand or otherwise and withdrawableby cheque draft order or otherwise."