Expansion: Penetrating to the rural markets & bringing the rural masses under the purview of organized

banking will be the objective of the Banks in decades to come.

Changing Socio-cultural & demographic factors: Given the demographic shifts resulting from changes in
age profile and household income, consumers will increasingly demand enhanced institutional
capabilities and service levels from banks.

Rise in private sector banking: Banking Industry across the world is highly regulated &lead by PSUs with
their respective central banks. With the advent of private sector banks this sector is going through
structural & functional changes mainly due to the adaptation of the advanced technologies & increased
competition thereby benefiting to the end customers.

Recession: It is one of the major threats to the financial system of the nation. Traumatic shock of
Economic crises & collapse of the several businesses can affect the banks and vice-versa.

Stability of the system: Failure of some weak banks has often threatened the stability of the system.

Competition: Competition from NBFCs (Non-banking financial companies) like insurance companies &
mutual fund companies can affect the business of Banks.