The Odisha government has withdrawn its decision to remove HDFC Bank, ICICI Bank, and Axis Bank from its list of empanelled banks due to poor performance. This move comes after senior officials from the three banks met with Chief Minister Mohan Majhi on July 1 and provided a written assurance to improve their performance in priority sector lending and credit-to-deposit ratio.
Key Highlights:
- Reversal of Decision: The state government has decided to withdraw its earlier order dated June 21, allowing the three banks to continue handling state government business and deposits.
- Improved Performance: The banks have committed to enhancing their performance in government flagship schemes and general banking parameters.
- No Reversal of Past Actions: Any actions taken by state government organizations under the previous order, such as account closures or deposit withdrawals, will not be reversed.
Background:
The Odisha government had initially decided to delist the three banks due to their poor performance in major government schemes and failure to meet general banking parameters. However, after the banks' assurance to improve, the government has decided to give them another chance.