Corporate loan pick-up could fizzle out: Analysts

According to an analyst, private sector banks have enough capital to make good use of the space left behind by PSBs

Signs of credit revival in the books of private lenders might not be an indication of investment revival, analysts have cautioned. The corporate loan books of Axis Bank and IndusInd Bank had shown good signs. These could be essentially working capital loan extensions due to a pullback by public sector banks (PSBs). Such a rise in the loan books could be tricky for private banks, as a system-wide credit revival would put PSBs back in the game. The business opportunity could then again swing away from private lenders, say analysts. 

Axis Bank’s corporate loan book grew 10 per cent year-on-year in