It is when the bad loan problem is allowed to accumulate through forbearance or non-recognition that regulators have the difficult task of bringing the system back on track. That is the problem we have had to deal with at the RBI.
As I have shown you, the consequence since early 2014 of the past build-up of stressed loans was a slowdown in public sector bank lending in certain sectors. The cessation of RBI forbearance and the Asset Quality Review in mid 2015 were therefore not responsible for the  6  BIS central bankers’ speeches  slowdown.