Finance:CASA ratio
| 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
[math]\displaystyle{ {CASA Ratio} = \left ( \frac{CASA Deposit}{Total Deposits plus CASA} \right ) }[/math]
See also
References
- ↑ Jump up to: 1.0 1.1 1.2 "Kotak Mahindra Bank - Q4FY18 Results". Kotak Mahindra Bank. April 30, 2018. https://www.kotak.com/content/dam/Kotak/about-us/media-press-releases/2018/Kotak-Mahindra-Financial-Results-Q4-FY18-Media-Release.pdf.
- ↑ "SBI Closed 41 Lakh Savings Bank Accounts Between April And January". NDTV. March 21, 2018. https://www.ndtv.com/business/state-bank-of-india-sbi-clarifies-on-closure-of-41-lakh-saving-bank-accounts-due-to-insufficient-bal-1824274.
- ↑ "Yes Bank-Annual-Report 2018". Yes Bank. April 30, 2018. https://www.yesbank.in/pdf/annualreport_2017_18_pdf.
- ↑ "Bank Alfalah posts profit after tax of Rs.7.9bn with EPS of Rs.4.96". Business Recorder. 24 February 2017. https://www.brecorder.com/2017/02/24/337836/bank-alfalah-posts-profit-after-tax-of-rs79bn-with-eps-of-rs496-337836/.
- ↑ "IndusInd Bank Q4 net rises 25%". The Hindu Business Line. 16 April 2015. http://www.thehindubusinessline.com/industry-and-economy/banking/indusind-bank-posts-25-rise-in-q4-net-profit/article7109045.ece.
- ↑ R. Narayanaswamy (2 April 2014). Financial Accounting: A Managerial Perspective. PHI Learning. p. 589. ISBN 978-81-203-4949-0. https://books.google.com/books?id=tpJeBAAAQBAJ&pg=PA589. Retrieved 8 May 2015.
- ↑ "What is CASA ratio?". The Economic Times. 10 May 2009. http://economictimes.indiatimes.com/magazines/money-you/what-is-casa-ratio/articleshow/4504623.cms.
- ↑ "Banks' CASA deposits grow 33%: What it means". Yahoo. 28 November 2013. https://in.finance.yahoo.com/news/banks%E2%80%99-casa-deposits-grow-33---what-it-means-050342305.html.
Further reading
- "What is CASA ratio?". The Economic Times. 10 May 2009. http://economictimes.indiatimes.com/magazines/money-you/what-is-casa-ratio/articleshow/4504623.cms.
- "De-jargoned: CASA". Live Mint. 6 February 2013. http://www.livemint.com/Money/36YCmPypZmM9CMIdnrWutK/Dejargoned-CASA.html.
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