Punjab Govt De-Empannel India’s largest bank to conduct any govt business, releases new list of banks
Kanwar Inder Singh/ royalpatiala.in News/ June 11,2025
In an utter surprise, Finance department of Punjab government while taking a bold step has de-empannel India’s largest bank HDFC for non-cooperation with state government.
In a order issued by the finance department of the Punjab government to all the financial commissioners, principal secretaries administrative secretaries , all heads of the departments, all divisional commissioners, deputy commissioners, all managing directors, chief executives of corporations, boards, companies , autonomous bodies in Punjab it is said that “HDFC has not cooperated with the State government in implementing its order to carry out certain time bound transactions, it has consequently failed to comply.”
“Under such circumstances, it would not be prudent to conduct any Government business with the HDFC bank. Accordingly, the HDFC bank is hereby de-empanelled, and updated list of empanelled banks is issued” read the orders.
To manage borrowings, on June 5, Punjab finance department, which is facing an acute financial crunch, had asked at least a dozen state government departments to immediately deposit funds available with them into the state treasury.
“The govt has taken this harsh step after the bank ignore the urgent need of the state government in managing its funds and the bank failed to act in time” said an officer on the condition of anonymity.
Punjab Govt De-Empannel India’s largest bank to conduct any govt business, releases new list of banks. As per reports, HDFC Bank is the most valuable private bank in India, based on their market capitalisation — a clear indicator of how investors and markets value these institutions.
As per Forbes India May 16,2025 report, HDFC tops the bank list chart where both nationalized and private banks are listed with Rs 14.80 lakh crore market capital.
