The spread, too, was uneven…...” Current Challenges and the Role of Exogenous Factors 3. Against this historical detour, let me come to the challenges faced by the banks today, many of which are a result of how various exogenous factors have played out over the years. Everyone concerned should realise that banks are in the business of taking bonafide risks.
This means that out of a host of exposures which a bank chooses to take, a few may go bad. The PSBs, which have been used as vehicles to further the development agenda of the Government, had to achieve and maximise multiple objectives.