The Bank of Madras, one of the three Presidency Banks, the other two being, the Bank of Bengal and the Bank of Bombay, was established on 1 July 1843, and was headquartered in Madras, now Chennai. It is now subsumed in the State Bank of India.
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In 1683, Governor William Gyfford (1681-1687) and his Council in Madras established a bank. In 1805, Governor Sir William Bentinck convened a Finance Committee that recommended the formation of a government bank; the Madras Bank, which was sometimes called the Government Bank, began functioning from February 1, 1806.
The Bank of Madras was formed in 1843 as a joint stock company with a capital of Rs.3 million by the amalgamation of Madras Bank, Carnatic Bank (1788), the British Bank of Madras (1795), and the Asiatic Bank (1804). Bank of Madras had a branch network spread into all the major cities and trade centers of South India, including Bangalore, Coimbatore, Mangalore, Calicut, Tellicherry, Cochin, Alleppy, Cocanada, Guntur, Masulipatnam, Ootacamund, Nagapatnam, and Tuticorin. It also had a branch in Colombo, British Ceylon, now called Sri Lanka.
The Bank of Madras undertook all the normal activities that are common to a commercial bank. The Bank of Madras, in the absence of any central banking authority during that time, also conducted certain functions that are ordinarily a preserve of a central bank. These included managing the banking business of the Presidency of Madras and offices of the colonial government of India located in South India, and managing the Public Debt Office of the Government of Madras.
The Head Office of the Bank of Madras was shifted to a new building, on South Beach Road, Madras, in 1897. The site was acquired for Rs. 100,000 in 1895, building was designed by Col. Samuel Jacob, and suitably modified and adpted by Henry Irwin (1841-1922), and constructed by Namperumal Chetty, a reputed builder, for Rs. 300,000. The building is an exquisite example of Victorian architecture. Currently, the building houses several Offices of State Bank of India, Chennai.
The Bank of Madras merged with the two other Presidency banks - the Bank of Calcutta and the Bank of Bombay - on 27 January 1921 and the reorganized banking entity took on the name Imperial Bank of India. In 1955 the Reserve Bank of India, which is the central banking organization of India, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became the State Bank of India.