Kotak says private capex rises as credit growth stays weak
In short
RBI data show companies are planning more capital spending. Bank funding is still going mainly to infrastructure, especially power and greenfield projects.
Kotak says this points to a weak credit growth cycle overall, even with better private capex. The reporting does not say when lending will improve or how broad the recovery may be.
What the reporting says
RBI data show higher corporate capital expenditure ahead, while bank funding continues to favor infrastructure, especially power and greenfield projects. The publisher-supplied summary frames this as a mixed picture for India’s credit cycle, with private capex improving but overall credit growth still weak. What remains unclear is how quickly broader lending will recover and which sectors may benefit most.
Why it matters
RBI data cited in the summary show higher corporate capital expenditure ahead, while bank funding continues to favor infrastructure, especially power and greenfield projects. Kotak’s view is that India’s credit growth cycle remains weak despite the capex pickup. This matters for banks, infrastructure borrowers and lenders, but the reporting does not say when credit demand will broaden or strengthen.