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%. 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.
Formula
CASA ratio of some Indian banks + CASA ratio of select banks Bank CASA Ratio Date SBI 43.81% 2017 Yes Bank 26% 2020 Kotak Mahindra Bank 51% March 2018 ICICI Bank 51% January 2019 Karnataka Bank 28.91% March 2020 IndusInd Bank 42.00% March 2021
See also Banking in India References
Further reading