CASA ratio

CASA ratio of select banks
BankCASA RatioDate
HDFC Bank52%2017 [1]
Yes Bank22.5%September 2014 [1]
Axis Bank40%September 2014[1]
Kotak Mahindra Bank51%March 2018[1]
Bank Alfalah83.3%February 2017[2]
ICICI Bank43.7%September 2014[1]
IndusInd Bank34.12%March 2015[3]

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%.[4] 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.[5][6]

Formula

See also

References

  1. 1 2 3 4 5 "Kotak Mahindra Bank - Q4FY18 Results" (PDF). Kotak Mahindra Bank. April 30, 2018. Retrieved May 7, 2018.
  2. ↑ "Bank Alfalah posts profit after tax of Rs.7.9bn with EPS of Rs.4.96". Business Recorder. 24 February 2017. Retrieved 9 Jan 2018.
  3. ↑ "IndusInd Bank Q4 net rises 25%". The Hindu Business Line. 16 April 2015. Retrieved 8 May 2015.
  4. ↑ R. Narayanaswamy (2 April 2014). Financial Accounting: A Managerial Perspective. PHI Learning. p. 589. ISBN 978-81-203-4949-0. Retrieved 8 May 2015.
  5. ↑ "What is CASA ratio?". The Economic Times. 10 May 2009. Retrieved 8 May 2015.
  6. ↑ "Banks' CASA deposits grow 33%: What it means". Yahoo. 28 November 2013. Retrieved 8 May 2015.

Further reading

  • "What is CASA ratio?". The Economic Times. 10 May 2009.
  • "De-jargoned: CASA". Live Mint. 6 February 2013.
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