The banking industry is facing several challenges that are hindering its growth. One of the major issues is the skewed retail credit growth, which has led to an imbalance in the loan portfolio of banks. This imbalance not only affects the profitability of banks but also poses a risk to the overall stability of the financial system. Additionally, governance issues persist in the industry, with instances of fraud and mismanagement still occurring. These challenges need to be addressed in order to ensure a cleaner and more robust banking sector.
