Odisha Government Reinstates Private Banks for State Deals

The Odisha government has reversed its decision to restrict three private banks from handling state transactions, according to a recent official order. The banks, namely HDFC Bank, ICICI Bank, and Axis Bank, had previously been removed from the list of sanctioned banks due to unsatisfactory performance in managing state-run schemes.

The change comes after a July 1 meeting between senior bank representatives and Chief Minister Mohan Majhi. During the meeting, the banks presented written commitments to enhance their performance, particularly in priority sector lending and improving credit-to-deposit ratios.

In light of these assurances, the state government has decided to annul its earlier order from June 21. Consequently, these three banks will continue to be listed as panelled banks, authorized to handle business and deposits for state government entities.

(With inputs from agencies.)