15 Banks Selected For Odisha Govt PSU Business

May 31, 2016 Government

BHUBANESWAR: The Odisha government has empanelled 15 banks for handling the business and deposits of the State Public Sector Undertakings (SPSUs) and State Level Autonomous Societies (SLASs).

These include two RRBs, eleven public sector banks, one private bank and the State Cooperative Bank.

For the empanelment, the state government in consultation with SLBC, RBI and other banks had finalised 15 parameters to measure the banks’ performance in financial inclusion, especially sanctioning of loans to agriculture, MSME and SHGs/JLGs, as well as the opening of new bank branches in unbanked Gram Panchayats.

For the empanelment, the minimum eligibility score was 60 out of 100. Bonus 5 marks were given to banks managing RSETI and RRBs. SBI showed the best performance scoring 80 out of 100, followed by Indian Overseas Bank (79) and Utkal Grameen Bank (73).

SBI and IOB got AA+ rating, while five other banks, UGB, UCO Bank, OSCB, Bank of Baroda, and Union Bank of India got AA rating scoring 70 and above. Odisha Gramya Bank, Bank of India and Indian Bank got A+ rating, while another five banks, United Bank of India, HDFC, Canara Bank, Allahabad Bank and Andhra Bank got ‘A’ rating. No other bank could score even 60. HDFC is the only private sector bank found eligible for empanelment.

However, irrespective of whether it is empanelled or not if a bank opens the first bank branch in a unbanked Gram Panchayat, then the entire Government funds of that Gram Panchayat shall be parked in that bank branch.

Dr Tapan Kumar Pradhan, Director and Additional Secretary, Finance Department, said that in the coming years also banks showing better performance in the field of agriculture and priority sector lending, as well as those providing banking services in unbanked areas, will be given priority while selecting banks to handle SPSU and SLAS deposits.

Submission of wrong data and failure to submit required information to the State Government can result in the removal of a bank from the panel at any time.