Three private commercial banks—Axis, HDFC, and ICICI—were removed off the list of banks authorized to handle the deposits and business of government agencies and departments, but the Odisha government on Saturday reversed that decision.

In this regard, a notification was released today by the Odisha government’s Finance Department.

According to the announcement, HDFC Bank, ICICI Bank, and Axis Bank would remain empanelled institutions that are qualified to manage the deposits and business of state government agencies.

“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,On July 1, 2025, the Hon. Chief Minister of Odisha, who also serves as the Finance Minister of Odisha, met with very senior officials from these three banks, who represented the top management of their respective banks. They provided written assurances to improve their performance under government schemes, as well as in Priority Sector Lending, CD Ratio, and other areas. According to the statement, “all of them have asked the State Government to keep them on the embanelled list of banks.”