CASA ratio

CASA ratio of select Indian banks
Bank CASA Ratio Date
HDFC Bank 43.2% September 2014[1]
Yes Bank 22.5% September 2014[1]
Axis Bank 40% September 2014[1]
Kotak Mahindra Bank 31% September 2014[1]
ICICI Bank 43.7% September 2014[1]
IndusInd Bank 34.12% March 2015[2]

CASA ratio stands for current and savings account ratio. CASA ratio of a bank is the ratio of deposits in current and saving accounts to total deposits. A higher CASA ratio indicates a lower cost of funds, because banks do not usually give any interests on current account deposits and the interest on saving accounts is usually very low 3-4%.[3] If a large part of a bank's deposits comes from these funds, it means that the bank is getting those funds at a relative lower cost. It is generally understood that a higher CASA ratio leads to higher net interest margin. In India, it is used as one of the metrics to assess the profitability of a bank.[4][5]

Formula

See also

References

  1. 1 2 3 4 5 "HDFC Bank loses its Casa-leader slot". Business Standard. 10 December 2014. Retrieved 8 May 2015.
  2. ↑ "IndusInd Bank Q4 net rises 25%". The Hindu Business Line. 16 April 2015. Retrieved 8 May 2015.
  3. ↑ R. Narayanaswamy (2 April 2014). Financial Accounting: A Managerial Perspective. PHI Learning. p. 589. ISBN 978-81-203-4949-0. Retrieved 8 May 2015.
  4. ↑ "What is CASA ratio?". The Economic Times. 10 May 2009. Retrieved 8 May 2015.
  5. ↑ "Banks' CASA deposits grow 33%: What it means". Yahoo. 28 November 2013. Retrieved 8 May 2015.

Further reading

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