India’s economic recovery to be slower as banks turn cautious

Several economic challenges have emerged after the second wave of the Covid-19 pandemic. One major hurdle involves the country's banking sector. Here is all you need to know.

The pace of India’s economic recovery has slowed down significantly after the second wave of the Covid-19 pandemic. There are multiple challenges on the economic front at the moment, ranging from high inflation to lack of demand and weak consumer sentiments. There seems to be another hurdle that involving banks that seems bigger than all the others challenges mentioned above. Banks in the country have turned cautious after the second wave and have tightened lending even as companies and individuals are seeking more credit.