Nayak’s report, published in mid-2014, painted a grim picture of uncompetitive, capital-starved institutions, led by cautious bureaucrats and hobbled by political interference.16 India’s bad-loan problems were likely to get worse, Nayak argued, requiring yet more emergency capital to be pumped in by the government to keep them afloat. Yet without drastic changes to the way the banks were run, even this recapitalisation would simply mean throwing more good money after bad.
