What is the CASA ratio?
Jul 28, 06:07

CASA ratio, in banking parlance, refers to the proportion of low-cost sticky current-account and savings deposits as against overall deposits of the bank. CASA deposits are a cheap source of liquidity for banks as customers offer to keep their small savings for a long-term with the bank, which the lender subsequently uses for growth and other operational purposes. A higher CASA ratio of bank indicates that its cost of funds is lower, which can aid earnings. During April-June, most large public and private sector lenders reported a double-digit yearly growth in their CASA deposits.

The CASA rush