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From until 31 March , it had been an associate bank of the SBI, the largest such. SBH had over 2, branches and about 18, employees. The Bank's business has crossed Rs.
The bank has performed well in the past decades, winning several awards for its banking practices. It was the chief banker of Telangana State. The bank was the central bank of the erstwhile Nizam state under the name Hyderabad State Bank. The bank managed the Osmania Sicca , the currency of Hyderabad state, which covered the present-day Telangana , some districts later known as Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra.
At the time a number of the princely states had their own currencies. The bank also carried out commercial banking. The bank opened its first branch at Gunfoundry, Hyderabad on 5 April The Imperial Bank of India , which had established a branch in Hyderabad in and another in Secunderabad in , provided officers and clerical staff in the initial stages, and later provided training for new recruits. By , the bank had some 50 branches, including branches in parts of the then Hyderabad State that would later be transferred to other states.
In , the bank absorbed, by merger, the Mercantile Bank of Hyderabad , which Raja Pannalal Pitti had founded in In the same year, the Bank started conducting government and Treasury business as agent for the Reserve Bank of India.
That same year saw the break-up of Hyderabad State. Gulbarga , Bidar , Raichur , and parts of Osmanabad were merged with Karnataka state.