New Delhi, Oct. 22 -- After several muted quarters, banks in India are witnessing a gradual revival in corporate credit growth, with strong demand pipelines raising hopes of a more robust turnaround in the second half of the fiscal.

While the uptick is largely driven by working capital financing, some capex-linked lending and project financing deals are also resurfacing in sectors such as infrastructure, renewables, and manufacturing, senior bankers said.

At India's largest private sector lender HDFC Bank, which had earlier slowed its wholesale book as competitive loan pricing muted loan spreads, the tone has changed.

"...[investment in capex] is very modest... it is largely working capital financing (that) we have participated in (thi...