# CASA ratio

CASA ratio of select banks
Bank CASA Ratio Date
HDFC Bank 52% 2017 [1]
SBI 43.81% 2017 [2]
Yes Bank 26% 2020 [3]
Axis Bank 40% September 2014[1]
Kotak Mahindra Bank 51% March 2018[1]
Bank Alfalah 83.3% February 2017[4]
ICICI Bank 51% January 2019
Karnataka Bank 28.91% March 2020
IndusInd Bank 42.00% March 2021[5]

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%.[6] 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.[7][8]

## Formula

${\displaystyle {CASARatio}=\left({\frac {CASADeposit}{TotalDepositsplusCASA}}\right)}$