Explanation –

Slower Deposit Growth: This represents a challenge for banks as slower growth in deposits can limit their ability to lend and conduct other financial activities.

Fintech Competition: With the rise of fintech companies offering innovative and convenient financial services, traditional banks face increased competition, which can impact their market share and profitability.

However, large and growing market, is not a challenge for Indian banks. In fact, a large and growing market presents opportunities for banks to expand their customer base and increase their business operations.

Source: Forum IAS