What does CASA ratio mean?
CASA stands for current account and savings account. The CASA ratio is the share of a bank's deposits held in these two account types.
Most of the rest are term deposits, also called fixed deposits. Those lock money in for a set period.
Why does a bank track it?
A bank's biggest cost is the interest it pays for money. Savings accounts usually pay a lower rate than fixed deposits.
RBI lets banks take interest-free deposits only in current accounts.[S1]
So the deposit mix shapes what a bank pays for its money. That cost feeds into the net interest margin, the gap a bank earns on its loans.
What makes the ratio change?
Customers decide where to keep their money. When fixed deposit rates rise, some savers move money out of savings accounts into fixed deposits.
A merger can also shift the mix. If a bank absorbs a lender that funded itself with bonds and term deposits, its CASA share falls.
Where do you see it on Cityfort?
Each bank's stock page shows it in "Financial strength", next to loans and deposits. The block below shows the same number for every bank on Cityfort, with the year and the source.