The most plausible explanation I have is that the stressed balance sheet of public sector banks is occupying management attention and holding them back, and the only way for them to supply the economy’s need for credit, which is essential for higher economic growth, is to clean up.
7 See Ben S. Bernanke (2017), “Monetary Policy in a New Era,” paper presented at “Rethinking Macroeconomic Policy,” a conference held at the Peterson Institute for International Economics, Washington, October 12–13, https://www.brookings.edu/wp-content/uploads/2017/10/bernanke_rethinking_macro_final.pdf.