It was established, pursuant to a charter of the British East India Company, on 15 April 1840.

The bank's headquarters were in Bombay, now called Mumbai.

The Bank of Bombay undertook all the normal activities which a commercial bank was expected to undertake.

The Bank of Bombay, in the absence of any central banking authority at that time, also conducted certain functions which are ordinarily a preserve of a central bank.

The Reserve Bank of India, which is the central banking organization of India, in the year 1955, acquired a controlling interest in the Imperial Bank of India and the Imperial Bank of India was renamed on 30 April 1955 to the State Bank of India.