Is the RBI trying to increase growth by increasing bad loans?

"A sharp pickup in India's business activity in January signaled momentum returning to Asia's third-largest economy, although a strong recovery looks unlikely as consumer demand remains subdued," wrote Anirban Nag. "The Markit India Services PMI index climbed to 55.5 in January -- the highest in seven years -- from 53.3 in December." "The IHS Markit Manufacturing Purchasing Managers' Index (PMI) jumped to 55.3 in January from 52.7 in December." "The country has entered a major economic slowdown. The growth number probably understates the magnitude of the slump," wrote Noah Smith. The Reserve Bank (RBI) cut interest rate 5 times last year, to 5.15%, so that real interest rate is at minus 2.44% as retail inflation jumped to 7.59% in January. The RBI should buy up loans of banks and shadow banks, so that they can resume lending, and the government should invest in infrastructure of cities to increase urbanisation, which will reduce poverty by allowing the rural poor to move to cities to earn more. Trouble is, that the RBI is predicting that bad loans at commercial banks will rise to 9.9% in September 2020 from 9.3% in September 2019, wrote Gopika Gopakumar. In October, the Supreme Court ordered telecom companies to pay the government a total of Rs 1.3 trillion in unpaid licence fees, penalties and taxes. Top Indian banks have an exposure of Rs 1.5 trillion  to telecom companies and if one of them defaults it will add to bad loans. Naturally, telecom company Vodafone Idea wants to increase charges to customers by 7-8 times to be able to pay the government. An alarmed RBI is concerned about increasing bad loans at banks if the company defaults, if prices are not raised, and of increasing retail inflation if prices jump. Farm loans waivers by politicians, to win elections, will add Rs 607.62 billion to bad loans at State-run banks. Former governor of the RBI Raghuram Rajan instituted an asset quality review (AQR) which revealed a jump in bad loans at banks from 4.62% in 2014-15 to 10.41% by December 2017. The present governor Shaktikanta Das has allowed banks to conceal bad loans of the micro, small and medium enterprises (MSMEs) and real estate sectors. A survey by the RBI showed that consumer sentiment is at a five-year low leading to low capacity utilization at manufacturing firms. Capacity utilization needs to be above 80% before companies will invest in new projects. Capacity utilization is presently at 69% so the RBI is trying to facilitate consumer lending in an effort to increase demand, wrote Prof Deep Narayan. Household savings are at a 15-year low so people are borrowing to finance consumption. If the economy does not pick up households could also default on their loans. That is when the stink will hit the fan.