Bhubaneswar, July 5: In a key policy reversal, the Odisha government has withdrawn its earlier decision to remove HDFC Bank, ICICI Bank, and Axis Bank from the list of banks authorized to handle State Government business and deposits. This move follows written assurances from the top leadership of the three private sector banks to rectify shortcomings and improve performance in priority sectors and government schemes.

The reversal was formally communicated through a letter issued by Finance Department Principal Secretary Saswata Mishra to all departmental heads. The letter revokes the earlier directive (Letter No. 18560 dated June 21, 2025) which delisted the banks due to poor showings in implementing flagship schemes and weak indicators like Priority Sector Lending and Credit-Deposit Ratio.

During a high-level meeting held on July 1, 2025, top executives from HDFC, ICICI, and Axis Bank met with Chief Minister and Finance Minister Mohan Charan Majhi and committed to taking immediate corrective action. Based on these assurances, the State Government has decided to reinstate the banks to the empanelled list.

However, the Finance Department clarified that any actions already undertaken—such as account closures or deposit withdrawals in response to the June 21 order—will remain unchanged and will not be reversed.

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