CASA ratio
| 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
- ^ a b c d e "HDFC Bank loses its Casa-leader slot". Business Standard. 10 December 2014. Retrieved 8 May 2015.
- ^ "IndusInd Bank Q4 net rises 25%". The Hindu Business Line. 16 April 2015. Retrieved 8 May 2015.
- ^ R. Narayanaswamy (2 April 2014). Financial Accounting: A Managerial Perspective. PHI Learning. p. 589. ISBN 978-81-203-4949-0. Retrieved 8 May 2015.
- ^ "What is CASA ratio?". The Economic Times. 10 May 2009. Retrieved 8 May 2015.
- ^ "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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