A plan by the Indian Government to consolidate small state-run banks has been criticised by the man who recently headed a Government panel on banking reform, The Economic Times reports. Former Axis Bank chairman PJ Nayak said the plan would not solve the issues faced by state-run banks, which have serious asset quality problems. At the end of June total stressed assets and restructured loan of state-run banks represented 13.4 per cent of assets. Nayak said creating a big weak bank out of a number of small weak banks was not a solution.