A notification issued by the state finance department confirmed the reversal, allowing the three banks to continue as empanelled institutions authorised to manage government-related financial transactions
Bhubaneswar: The Odisha government on Saturday withdrew its earlier decision to de-empanel three leading private sector banks — Axis Bank, HDFC Bank, and ICICI Bank — from handling the business and deposits of state government organisations and departments.
A notification issued by the state finance department confirmed the reversal, allowing the three banks to continue as empanelled institutions authorised to manage government-related financial transactions.
The government had, through a notification dated June 21, 2025, removed the banks from its empanelled list, citing their "poor performance in government flagship schemes and unsatisfactory general banking parameters." However, following a meeting between top executives of the three banks and Chief Minister Mohan Charan Majhi — who also holds the finance portfolio — on July 1, the decision was reconsidered.
According to the fresh notification, senior officials from the banks personally met Chief Minister Majhi and submitted written assurances to improve their performance under government schemes, enhance their credit-deposit (CD) ratio, and step up lending in the priority sector.
“In view of these developments, the State Government has decided to withdraw the earlier decision communicated through the Finance Department’s letter dated June 21, 2025,” the notification stated.
It further clarified that while the banks would be reinstated on the empanelled list, any action already taken by government organisations — such as account closures or deposit withdrawals — in compliance with the previous order would remain unaffected.
The episode underscores the state government’s firm stance on banking performance benchmarks while signalling its openness to dialogue and corrective commitments from financial institutions.
