Bhubaneswar: In a significant development, the Odisha government has reversed 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 organisations. The reversal comes following personal assurances from the top leadership of the three private banks to improve performance under government schemes and key banking parameters.
As per a letter issued by Principal Secretary to Government, Finance Department, Saswata Mishra, addressed to all department heads on Saturday, the earlier directive (Letter No. 18560 dated June 21, 2025), which removed the three banks from the empanelled list, has now been withdrawn.
The earlier decision had cited the poor performance of these banks in implementing government flagship schemes and unsatisfactory general banking indicators such as Priority Sector Lending and Credit-Deposit (CD) Ratio.
However, during a high-level meeting held on July 1, 2025, senior executives from HDFC Bank, ICICI Bank, and Axis Bank met Odisha Chief Minister and Finance Minister Mohan Charan Majhi, offering written assurances of immediate corrective steps.
Taking this into consideration, the State Government has now decided to allow the three banks to continue operating as empanelled banks for all State Government business and deposits.
The Finance Department has, however, clarified that any action already taken by State Government departments in compliance with the June 21 directive—such as account closures or withdrawal of deposits—will not be reversed.
