WHAT IS CASA RATIO IN CASE OF BANKS?

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CA Lokesh Pokharna (Querist)

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)

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)

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)

11 December 2009 very very thnx sirrrrrr

Taranjit Singh

Taranjit Singh (Expert)

11 December 2009 Welcome.....

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