HDFC Bank, ICICI Bank, Axis Bank allowed to provide financial services for defence procurement

New Delhi [India], July 7 (ANI): The government of India has allowed three private sector lenders - HDFC Bank, ICICI Bank and Axis Bank - to provide financial services for overseas procurement by the Ministry of Defence.



In line with further opening of allocation of Government business to Private Sector Banks by the Department of Financial Services, MoD has assigned three Private Sector Banks viz HDFC Bank Ltd., ICICI Bank and Axis Bank to provide the Letter of Credit and Direct Bank Transfer business for overseas procurement by the Ministry, according to an official statement released by the Ministry of Defence on Thursday. MoUs in this connection have been signed with each of these three banks recently by PCDA, New Delhi on behalf of the Ministry of Defence, it said.


Till now, only authorised public sector banks were utilised to provide these services to MoD. With this, for the first time, three Private Banks have also been allowed to provide financial services for overseas procurement by MoD.



The selected banks may be allocated with LC business of Rs 2000 crore, each on the capital and revenue side, for a period of one year on a concurrent basis (Rs 666 crore for each bank under both capital as well as Revenue).The performance of these Banks will be monitored regularly so as to take necessary further action as required, the ministry said.