Axis Bank’s chief executive and managing director Amitabh Chaudhry feels economic recovery will be slow, but there is optimism coming in from improved loan demand and credit card spends for the third-largest private sector lender.

He, however, sounded sceptical on whether the government can come out with more stimulus measures and said that the economic recovery will be a slow “L-shaped” one.

The country’s GDP contracted nearly a fourth in the June quarter and everybody is watching for signs of revival. Some analysts feel the encouraging data for the last month can be a sign of pent-up demand.

“My assessment is that the macro situation has improved quite a bit, especially in the last month or so. I’m seeing a clear return of optimism and this is evident when I converse with the CEOs of various organisations and when I see our own new loan enquiries, credit card spends and account openings,” Chaudhry said.

He was quick to add that we are not completely out of the woods yet and a sustained recovery may take a few quarters.

Over the recovery trajectory, Chaudhry said it will be “L-shaped” which is characterised by a slow rate of recovery with persistent unemployment and stagnant economic growth.

When asked if he expects the government to come out with a second stimulus package ahead of the festivities, Chaudhry sounded a bit sceptical and asked everybody to be “realist”. “Frankly, we have to do and get the business back rather than waiting for further handouts from the government,” he said.