(Adds graph) MILAN, Sept 9 (Reuters) - Italian bank lending to businesses in July grew at its slowest pace since March 2020, data showed on Thursday, as the boost to credit from state support measures aimed at cushioning the hit from the pandemic on the corporate sector waned. A monthly Bank of Italy report on the balance sheets of domestic banks showed loans to non-financial companies grew by 1.7% year-on-year in July, down from a 3.8% rise in June.Reversing a declining trend thanks to the emergency measures deployed by the government, bank lending to businesses had been expanding since March 2020, growing by as much as 8.3% year-on-year in December - the biggest rise in 12 years. The data also showed Italian residents’ deposits with domestic banks stood at 2.78 trillion euros ($3.29 trillion) in July, up from 2.75 trillion euros in June. Banks’ holdings of domestic government bonds increased to 422.72 billion euros from 417.73 billion euros the previous month. Gross unpaid loans were 48.41 billion euros at the end of July compared with 48.54 billion euros a month earlier. ($1 = 0.8454 euros)