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CASA ratio

From Wikipedia, the free encyclopedia

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%.[1] 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.[2][3]

Formula

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CASA ratio of some Indian banks

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CASA ratio of select banks
Bank CASA Ratio Date
SBI 43.81% 2017 [4]
Yes Bank 26% 2020 [5]
Kotak Mahindra Bank 51% March 2018[6]
ICICI Bank 51% January 2019
Karnataka Bank 28.91% March 2020
IndusInd Bank 42.00% March 2021[7]

See also

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References

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  1. ^ R. Narayanaswamy (2 April 2014). Financial Accounting: A Managerial Perspective. PHI Learning. p. 589. ISBN 978-81-203-4949-0. Retrieved 8 May 2015.
  2. ^ "What is CASA ratio?". The Economic Times. 10 May 2009. Retrieved 8 May 2015.
  3. ^ "Banks' CASA deposits grow 33%: What it means". Yahoo. 28 November 2013. Retrieved 8 May 2015.
  4. ^ "SBI Closed 41 Lakh Savings Bank Accounts Between April And January". NDTV. March 21, 2018. Retrieved Feb 2, 2020.
  5. ^ "Yes Bank-Annual-Report 2018". Yes Bank. April 30, 2018. Archived from the original on September 29, 2018. Retrieved May 7, 2018.
  6. ^ "Kotak Mahindra Bank - Q4FY18 Results" (PDF). Kotak Mahindra Bank. April 30, 2018. Retrieved May 7, 2018.
  7. ^ "IndusInd Bank Q4 net rises 25%". The Hindu Business Line. 16 April 2015. Retrieved 8 May 2015.

Further reading

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