(1) The State Bank shall maintain a special fund to be known as the Integration and Development Fund into which shall be paid--
(a) the dividends payable to the 6[Central Government] on such shares of the State Bank held by it as do not exceed fifty-five per cent. of the total issued capital; and
(b) such contributions as the 7[* * *] the Central Government may make from time to time.
1 [Provided that if the balance in the Integration and Development Fund on the date of declaration of any dividends by the State Bank in rupees five crores or more, no amount shall be paid into that Fund under Cl. (a) and the dividends payable to the 6[Central Government] shall be 8[paid to that Government], and if such balance on such date, is less than rupees five crores, only so much of dividends then payable as will bring such balance to rupees five crores shall be paid into that Fund and the balance of such dividends shall be paid to the 6[Central Government].]
(2) The amount in the said Fund shall be applied exclusively for meeting--
(a) losses in excess of such yearly sum as may be agreed upon between the 6[Central Government] and the State Bank and attributable to the branches established in pursuance of sub-section (5) of Section 16; 2 [***]
3 [(aa) subsidies granted by the State Bank to a subsidiary bank with the approval of the 6[Central Government]; and]
(b) such other losses or expenditure as may be approved by the Central Government in consultation with the Reserve Bank.
(3) Subject to the provisions of sub-section (2), the said Fund shall be the property, of the 6[Central Government] and no shareholder of the State Bank or any other person shall have any claim to the amount held in the said Fund.
4 [(4) No amount applied for any of the purposes specified in sub-section (2) shall, for the purposes of the 5 [Income-tax Act, 1961 (43 of 1961)], be treated as income, profits or gains of the State Bank.]
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1. Inserted by Act 35 of 1964, Section 12 (w.e.f. 1st December, 1964).
2. The word "and" omitted by Act 38 of 1959, Section 64, Third Schedule and Pt. VI, (w.e.f. 10th September, 1959).
3. Inserted by Act 38 of 1959, Section 64, Third Schedule and Pt. VI, (w.e.f. 10th September 1959).
4. Inserted by Act 26 of 1959, Section 7 (w.e.f. 28th August, 1959).
5. Substituted by Act No. 3 of 1994, Section 18 (w.e.f. 15th October, 1993).
6. Substituted for the the words "Reserve Bank" by the State Bank of India (Amendment) Act, 2007 [Act No. 32 of 2007].
7. Omitted the words "the Reserve Bank or" by the State Bank of India (Amendment) Act, 2007 [Act No. 32 of 2007].
8. Substituted for the the words "paid to that Bank" by the State Bank of India (Amendment) Act, 2007 [Act No. 32 of 2007].