Govt allows HDFC, ICICI & Axis banks to continue handling state business

Bhubaneswar: The Mohan Charan Majhi-led Odisha government has reportedly withdrawn its earlier order and allowed the HDFC, ICICI and Axis banks to continue handling state business.

As per the a notification issued by the Finance Department, headed by Chief Minister Mohan Charan Majhi, said that due to poor performance in government flagship schemes and unsatisfactory general banking parameters, the department had removed HDFC Bank, ICICI Bank and Axis Bank from the State Government list of banks empanelled for handling business and deposits of state government organisations.

“In the meantime, very senior officials of these 3 banks, representing top management of the respective bank, met Chief Minister on July 1 and submitted written assurance to improve their performance under Government schemes and also to improve their performance in Priority Sector Lending, CD Ratio, etc. They all have requested the State Government not to remove them from the empanelled list of banks,” the notification read.

“In view of this, the State Government has now decided to withdraw the State Government decision communicated vide the above-referred letter of Finance Department dated 21.06.2025. As a result, these 3 banks will now continue as empanelled banks eligible to handle business and deposits of State Government organisations,” it added.

However, any action already done by any State Government organisation (such as closure of any account, withdrawal of any deposit, etc.) in pursuance of the instruction of the State Government, communicated vide the above-referred letter of Finance Department dated 21.06.2025, shall not be undone now, it mentioned.