Odisha Government Reinstates Three Private Banks for State Business Operations

Government Lifts Restrictions on Private Banks

Bhubaneswar: On Saturday, the Odisha government announced the lifting of restrictions on three private banks, permitting them to manage state business, as per an official directive.

Previously, on June 21, HDFC Bank, ICICI Bank, and Axis Bank were removed from the list of approved banks due to their inadequate performance in managing state-run initiatives and failing to meet general banking standards.

The reversal of this decision came after senior representatives from these banks met with Chief Minister Mohan Majhi on July 1, providing written commitments to enhance their performance in areas such as priority sector lending and the credit-to-deposit ratio.

The official order stated, "In light of this, the state government has opted to rescind its earlier directive from June 21. Consequently, these three banks will resume their status as empanelled banks authorized to manage business and deposits for state government entities."