The Odisha government on Saturday withdrew its decision to remove three private sector banks from the list of imperialist banks, which handles government businesses and deposits after their “written assurance” to improve the performance.
On 21 June, the state government removed three private banks – HDFC BankICICI Bank and Axis Bank – due to their poor performance in government major schemes and unsatisfactory general banking parameters, from the state list of banks, from the state list.
The decision to withdraw the order of June 21 comes after a meeting of Chief Minister Mohan Charan Majhi, which also handles finance portfolio along with senior officials of three banks on 1 July. Officials requested the government that the government did not remove them from the list of employees.
A circular issued by Odisha Finance Secretary Saswat Mishra said, “Bank officials presented written assurance to improve their performance under government schemes and improve their performance in priority sector loans (PSLs), Credit-to-Dipocit (CD) ratio and other issues.”
The order states that these three private banks will now continue as eligible banks to handle the businesses and deposits of the state government organizations.
The government has several times pulled private banks for its low share in increasing the financial plans of the government for groups such as farmers, businesses and road vendors. State governments often realize that private banks mainly serve the rich sections of the society – which are less likely to be default and are more likely to maintain adequate deposits.
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