This is the first State Bank AGM to be held in Mumbai after the bank went public. The last time the State Bank had its AGM held in Mumbai was in 1976 when SBI was wholly owned by the Reserve Bank.

A comprehensive Act which would govern the working of commercial banks, all India financial institutions and other non-bank financial intermediaries would be an ideal situation, Verma said, adding "as a matter of fact no separate statues should exist governing different financial intermediaries when there is growing convergence among their functions".

The State Bank of India Act which governs the working of the bank needs to be amended, he said. The Law of Evidence, the Transfer of Property Act, the sick Industrial Companies Act, the Banking Regulation Act and Reserve Bank of India actare examples of legislation which are in urgent need for redrafting, Verma said adding the evolution of legal framework has not kept pace with the changing commercial practices and financial reforms.

"There are several pieces of legislation affecting bankers, which have become outdated in today's context. A related issue is the question of institution-specific regulation. It is suggested that in certain quarters that in view of the multifarious activities conducted by modern banks, a function-specific regulation would be more suitable form of regulation," he said.

A function-wise regulation of the banks, however, would make the task of regulation extremely complex and co-ordination amongst different regulators would be difficult. Verma also called for setting of of an effective self-regulatory organisation for banking industry which will monitor activities of the members by laying down the ground rules and settling disputes. "In the pre-reform days, the Indian Bank Association performed the role of an SROadmirably," Verma said.