Bhubaneswar, July 5: The Government of Odisha has reversed its earlier decision to delist HDFC Bank, ICICI Bank, and Axis Bank from the list of banks authorized to handle state government business and deposits, following top-level discussions and written assurances from the banks, officials said on Saturday.

Finance Secretary Saswata Mishra today issued a fresh directive to all department heads—including Additional Chief Secretaries, Principal Secretaries, Commissioners-cum-Secretaries, and Secretaries—noting the State government's decision to allow the banks to remain empanelled. The banks can now continue handling business and deposits of state government organizations.

The Finance Department had previously dropped the three banks on June 21, citing their unsatisfactory performance in flagship government schemes and poor general banking metrics such as Credit-Deposit (CD) ratio and Priority Sector Lending. However, following a high-level meeting between top management of the banks and Odisha Chief Minister Mohan Charan Majhi—who also holds the Finance portfolio—on July 1, the banks pledged to improve service delivery and compliance with government expectations.

However, the fresh directive clarified that any actions already executed by departments—such as account closures or deposit withdrawals—in response to the earlier order will remain valid and will not be reversed.

This development reaffirms the government’s willingness to engage with financial institutions while safeguarding public interest and accountability. It also sends a clear message about the importance of banking performance in executing government schemes efficiently.

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