ICICI Bk, HDFC Bk and Axis Bk can give fin services for overseas procurement for Defence Ministry

The Ministry of Defence (MoD) has assigned three private sector banks namely HDFC Bank Ltd, ICICI Bank and Axis Bank to provide the Letter of Credit (LoC) and direct bank transfer business for overseas procurement by the Ministry.

This is in line with further opening of allocation of Government business to private sector banks by the Department of Financial Services.

In this regard, a memorandum of understanding (MoU) has been signed with each of these three banks recently by PCDA, New Delhi on behalf of MoD.


For a period of one year, on concurrent basis the selected banks may be allocated with LC business of Rs 2000 Crore, each on the capital and revenue side (Rs 666 Crore for each bank under both capital as well as Revenue).

Moreover, the performance of these Banks will be monitored regularly so as to take necessary further action as required.

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 been given permission to provide financial services for overseas procurement by MoD.