The correct answer is option 1, i.e., Bank of Hindustan Explanation & Key Takeaways: • Banking services have been existing in India since ancient times. Though it was not in the organized form before the arrival of Britishers, various banking activities were performed. After the advent of Britishers in the 17^(th) century, foreign banking structure started declining. Mayer's Alexander and Company set up the first European bank - The Bank of Hindustan in 1770. • Awadh (Oudh) Commercial Bank was the first bank established in 1881 and governed exclusively by Indians on the basis of extending loans. • The East India Company set up Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843) as autonomous bodies and called them Presidency Banks. These three banks were merged in 1920 to form Imperial Bank of India, a bank of private European shareholders. • Punjab National Bank was established in 1894 and its headquarters were in Lahore. • Between 1906 and 1913, Bank of India (1906), Central Bank of India (1911), Bank of Baroda (1909), Canara Bank, Indian Bank (1907), and Bank of Mysore (1913) were set up.