Their first meeting was held at the Treasury offices on 11 February 1896, and called for applicants for the post of Inspector General, resulting in a large number of candidates, from whom G. S. Wright was selected.

Though the bank was a legal entity from 5 February 1896 and able to lend money on mortgage, it had no access to funds until the Treasurer (Holder) made it an advance of an undisclosed sum, modest but adequate to get the business running.

[citation needed] In March 1988, the bank purchased the life insurance and managed funds business Oceanic Capital Corporation for $60 million.

[citation needed] In the same year, its landmark building, then the tallest in Adelaide, was built in Currie Street, later Westpac House[6] and as of 2023[update], RAA Place.

Questions over the financial viability of the bank were first raised prior to the 1989 state election by Opposition Liberal Party member Jennifer Cashmore.

[9] The bank's managing director, Tim Marcus Clark, was ultimately considered the most legally responsible for the bank's downfall,[10] Labor Premier John Bannon resigned in 1992, and a landslide electoral defeat of the state Labor government occurred at the subsequent 1993 election, won by the Liberal opposition led by Dean Brown.

The State Bank debt was given as the main reason for the privatisation of Electricity Trust of South Australia by the second-term Liberal minority government led by John Olsen.

In March 1991, the Auditor General of South Australia was appointed to conduct an inquiry to determine the causes of the State Bank's need for Government support.