Odisha withdraws decision to de-empanel Axis, HDFC & ICICI banks

The Odisha government on Saturday reversed its earlier decision of removing three private commercial banks- Axis, HDFC & ICICI from the list of banks empanelled for handling business and deposits of government organizations and departments.

The Finance Department of the Odisha government has issued a notification in this regard today.

As per the notification, HDFC Bank, ICICI Bank and Axis Bank—will now continue as empanelled banks eligible to handle business and deposits of the state government organisations.

"Due to poor performance in Government Flagship Schemes and unsatisfactory general banking parameters, vide the above-referred letter of Finance Department, Government of Odisha 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 Hon'ble Chief Minister of Odisha (who is also the Finance Minister of Odisha) on 01.07.2025 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.

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"In view of this, the State Government has now decided to withdraw the 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. 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 the Finance Department dated 21.06.2025, shall not be undone now," it further read.