WHAT IS CASA RATIO IN CASE OF BANKS?

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CA Lokesh Pokharna (Querist)
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11 December 2009 I HEARD WORD CASA RATIO SOME WHERE ? PLZ ANYBUDY CAN TELL ME WHAT IS CASA RATIO IN THE CASES OF BANKS??????

Taranjit Singh

Taranjit Singh (Expert)
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11 December 2009 Hello dear.......

CASA stands for current and savings account. Different kinds of deposits ” current account, savings account and term deposits ” form the major source of funds for banks. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit.

Taranjit Singh

Taranjit Singh (Expert)
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11 December 2009 For little more understanding....A higher CASA ratio means higher portion of the deposits of the bank has come from current and savings deposit, which is generally a cheaper source of fund. Many banks donot pay interest on the current account deposits and money lying in the savings accounts attracts a mere 3.5% interest rate. Hence, higher the CASA ratio better the net interest margin, which means better operating efficiency of the bank.

CA Lokesh Pokharna

CA Lokesh Pokharna (Querist)
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11 December 2009 very very thnx sirrrrrr

Taranjit Singh

Taranjit Singh (Expert)
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11 December 2009 Welcome.....

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