This is untrue. The list of documents that are valid as proof-of-address when applying for a passport [1] include electricity bill, water bill, telephone bill, gas connection, election ID, rent agreement among many others. If you're really keen on using your bank passbook for some reason, you'll be happy to know that ICICI and HDFC (the largest private banks) are also accepted [2].
I have an SBI bank account but I've never had to use it for anything in the past half a decade. So I would dispute your claim that it's indispensable.
I was like 20/21 then, without any kind of bills as they were all under parents name. I missed on elections, so didn't have election ID. I had an ICICI account though for years, and it was for a fact rejected back in 2014, and that is exactly why I opened SBI. Maybe they changed the rule now. And that is exactly the reason why I or some of my friends had an nationalized bank account back then. My complain here is that govt keeps changing rules, and SBI is kind of safe choice even though I don't use it for anything.
I have an SBI bank account but I've never had to use it for anything in the past half a decade. So I would dispute your claim that it's indispensable.
[1] - https://portal2.passportindia.gov.in/AppOnlineProject/popupo...
[2] - https://portal2.passportindia.gov.in/AppOnlineProject/pdf/Ci...