the last published data is quite clear and there is lack of credit growth in single digit growth in the retail side is driving credit growth more than that in the industrial and services side corporate growth is driven largely by services and a subpart of services is banks lending into nbfcs if you take those away the core industrial credit growth is really weak close to zero or 23 says kvs manian wholetime director corporate institutional investment banking wealth management kotak mahindra bank excerpts from an interview with etnoweconomic data is indicating that the economy is weak and the credit demand is now in single digit single digit credit demand for large banks means that there is just no motion in the economy advt yes the last published data is quite clear and there is lack of credit growth in single digit if you just analyse it a bit more you can see that a large part of that growth in the retail side is driving the credit growth far more than the industrial and services side if you take the corporate growth it is driven largely by services and a subpart of services is banks lending into nbfcs if you take away those the core industrial credit growth seems to be really weak it will be close to zero or 23 not more than that now that is a fact for a while now the investment led credit was already low there were not too many term loans or funding projects happening for some time the working capital loans are not growing partly because we have seen significantly lower utilisation of working capital by our clients basically either in these times the firms are tightening their working capital and therefore making it more efficient and therefore drawing less from banks or because they are not growing too much and their need for further working capital from banks is lower overall both the investmentled side as well as the working capitalled side now look relatively weakwhenever the economy revives where would revival come from consumption may go up or down auto sales will be bad for six months and then the base effect would kick in but that is not how the economy works for the economy to work you need large sectors to fire like power cement steel metals everything fired together in the last decade advt it is all a vicious cycle it is not that consumption demand itself does not lead to investment over a period of time if consumption goes up capacity utilisations go up and therefore more investments happen all this is correlated they are not independent pockets i would say that some part of the consumption is led by confidence for example while auto is a large sector both from the employment and from gdp point of view it has a lot of trickledown effect right down to smes construction is again a sector which has a lot of trickledown effect in