The decision of the Imperial Bank of India Indian Staff Association (Madras Circle) to convene a conference at Madras had given a unique opportunity to all other Circle Associations to assemble for forging a very strong tie amongst all Circles and consult each other in all common interests. Such direct contact besides creating a strong bondage further helped in understanding each other's difficulties and devising ways and means for achieving the common goal.

It was felt by all the unions that a strong Federation had become absolutely necessary to safeguard the rights of the employees of the Imperial Bank of India. After threadbare discussions, Shri T.S. Ramanujam, the then President of Imperial Bank of India Indian Staff Association, moved the resolution for adoption of the constitution of the Federation and the same was adopted with thundering cheers from all sections.

It was decided that during the first year of the existence, the Federation shall operate from Calcutta. The cradle for the Federation was thus moved from Madras to Calcutta to enable the saviour child to receive the care and attention of the expert nurses in the field.

Consequent on the transformation of Imperial Bank of India into State Bank of India in July 1955 by a special enactment, the name of the Federation was changed as "All India State Bank of India Staff Federation" by an amendment adopted at the 5th conference of the Federation held at Calcutta on 12th and 13th March 1956.

The brave and far-sighted moves of the founding fathers to build a strong and close knit organization at Circle/All India level to safeguard the interests of employees was sought to be destroyed by the political forces that entered the power structure of the Organisation around 1955.

At the Circle Union's conference held at Coimbatore in 1959, as a first step to arrest the political influence over the functioning of the Circle union under the leadership of Shri V.G.Row, Bar-at-law, an Advocate owing allegiance to Communist Party of India, Shri K.Sitaram (former Joint Secretary of the Union) contested the elections with a team of workers that included Shri T.V.Loganathan (former President of the Union) and Shri C.L.Rajaratnam (former President who subsequently formed a rival Union after his defeat in 1981 Trivandrum Conference; the membership of the same rejoined the parent Organisation viz. SBSU (MC) within a short period.). While Sarvashri T.V.Loganathan and C.L.Rajaratnam were elected to the posts of Assistant Secretary and Vice-President respectively, Shri K.Sitaram withdrew from the contest on the floor of the Council.

When the evil designs of the outside leadership of the union came to surface during and after the heroic strike in 1960, Shri T.V.Loganathan mobilized the rank and file for ousting the outside leadership, who were aiming to shatter the solidarity of the Federation which was built brick by brick, by sweat and blood and by toil and moil of innumerable employees of the bank all over the Country. Such a movement gained momentum and the entire rank and file rose in revolt against the then leadership at the General Council meeting held at Tiruchirapalli on 14th and 15th October 1961. Under the guidance of Shri M.V.Alexander (former Senior Vice President) a team of dedicated workers – Viz. Sarvashri R.N.Godbole, S.P.Thyagarajan, P.V.H.Babu, N.Balasubramanian (Trichy), P.N.Krishnamurthy, V.Ganesan, S.P.Raman, C.Damodaran and few others mobilized the members of the General Council for support to oust the political leadership. By the democratic process the then leadership was thrown out of power lock, stock and barrel. Shri C.L.Rajaratnam was elected as the first employee President of the Circle Union and subsequently Staff Federation.

The swift measures initiated by the new Central Committee after eschewing the political forces from the Union in 1961 under the stewardship of Sarvashri T.V.Loganathan, V.Ganesan and C.L.Rajaratnam to tone up the administration of the Union, right from collection of subscriptions to strengthening the units at various branches in the Circle (then comprising of the entire Tamilnadu, Kerala, Karnataka, part of Andhra State and Union Territory of Pondicherry Branches), resulted in the building up of a close knit and a strong Circle Union viz. State Banks' Staff Union (MC).

Born as a small organization in 1947 covering hardly about 1000 employees, the All India State Bank of India Staff Federation has today grown into a powerful edifice branching out to more than 8000 Centres all over the Country and commanding a membership of over 1.30 lakhs.