Bhubaneswar, July 5: The Odisha government on Saturday revoked the restrictions earlier imposed on the delinked HDFC, Axis and ICICI Banks with their submission to cooperate in the government in developmental funding.
With it, the Odisha Finance department decided to include the HDFC Bank, ICICI Bank and Axis Bank in list of banks empanelled for handling state business and deposits of the state funds.
These three banks were delinked from the state’s business list due to their poor performance in executing government flagship schemes and general banking parameters.
This decision to withdraw the previous order was taken after senior officials of the banks met Chief Minister Mohan Majhi, who also holds the Finance portfolio, on July 1 and and submitted written assurance to improve their performance in priority sector lending and CD ratio. ”
In view of this, the state government has now decided to withdraw its earlier order dated June 21. As a result, these 3 banks will now continue as empanelled banks eligible to handle business and deposits of state government organisations,” a notification issued by the Finance Department said.
However, the actions already taken by the state government organisations under the previous order including closure of savings accounts or withdrawal of funds will not be reversed, the notification added.
