Does it mean "banks will not try to find ways to reduce their bad loans"?
"His argument against thinking of easier money as a tool to fix banks holds as an argument against a rate cut in general. “This would relax the pressure,” Acharya argues, “on good efforts that are underway … to improve the banking architecture.” In other words, if thrown a lifeline now, banks will have less of an incentive to clean up their books."
Source: https://www.bloomberg.com/view/articles/2017-07-27/there-s-one-good-reason-india-shouldn-t-cut-rates