Dubai: Adversely impacted on both supply and demand side, slow credit growth will be a major challenge for India’s post-pandemic economic recovery, according to bankers, economists and analysts. In addition to slowing credit growth, the economy faces on hurdles on multiple fronts including rising inflation, slowing demand and weak consumer sentiments. At the core of the economic woes lie the rising caution among banks in lending following the second wave of COVID-19. Aggregate credit at Indian commercial banks grew 5.6 per cent year over year in the quarter ended March 31, the slowest rate since the second quarter of 2017, according to data released by the Reserve Bank of India (RBI), on May 28. Aggregate deposits in the March quarter expanded at 12.3 per cent year over year, the fastest pace of quarterly growth since 2017.