Odisha Govt reinstates HDFC, ICICI, and Axis Bank for handling state business

Bhubaneswar, July 5: In a notable policy reversal, the Odisha government has withdrawn its earlier decision to delist HDFC Bank, ICICI Bank, and Axis Bank from the panel of banks authorized to handle business and deposits of State Government organizations.

The move comes after the top leadership of the three private sector banks provided personal assurances to improve their performance under key government schemes and meet essential banking benchmarks.

According to an official letter issued by Finance Department Principal Secretary Saswata Mishra to all department heads, the previous directive (Letter No. 18560 dated June 21, 2025), which had removed the three banks from the empanelled list, has now been officially revoked.

The initial delisting was based on unsatisfactory performance in areas such as the implementation of flagship government schemes, Priority Sector Lending, and Credit-Deposit (CD) Ratio. However, following a high-level meeting on July 1, senior officials from the banks met Chief Minister and Finance Minister Mohan Charan Majhi and submitted written commitments to address the shortcomings promptly.

While the three banks have now been reinstated, the Finance Department has clarified that any departmental actions already taken in response to the June 21 order—such as account closures or transfer of funds—will remain in effect and will not be reversed.