he pace of non-food credit, comprising loans to industry, services, retail and priority sectors, fell to 9.8 per cent in the 12 months ending August 2019 from 12.4 per cent in the corresponding period of the previous year.

Credit growth to the services sector decelerated to 13.3 per cent till August 2019 from 26.7 per cent in the previous period, according to the Reserve Bank of India data.

The economy grew by just five per cent in first quarter ended June 2019. Credit growth to industry accelerated to 3.9 per cent in the one-year period till August 2019 from 1.9 per cent in the same period till August 2018. Within the industry, credit growth to infrastructure, construction, cement and cement products have seen a growth.

In the retail segment, the deceleration was more prominent in vehicle loans. The year-on-year (YoY) growth in the auto segment dipped to 3.7 per cent in the one-year period till August 2019 from 12.7 per cent in the previous period. Housing loans to individuals improved to 16.6 per cent from 15.2 per cent.

The pace of growth in credit card loans came under pressure, clocking 14.4 percent growth in the one-year period till August 2019, down from 24.4 percent in the same period in August 2018. Though outstanding loans are growing, households have cut down on spending to manage life during difficult times, an analyst said.