What Is A Good CASA Ratio?

What do you mean by CASA ratio?

Current Account Savings Account RatioCurrent Account Savings Account Ratio The percentage of total bank deposits that are in a CASA is an important metric to determine the profitability of a bank.

The CASA ratio indicates how much of a bank’s total deposits are in both current and savings accounts..

How do you increase CASA ratio?

How do you increase CASA ratio? Banks can increase CASA ratio by offering a higher rate of interest on deposits which can attract more deposits, on the other hand it will have to pay higher interest rates to the depositors.

What is CASA sales?

Definition: CASA stands for Current Account and Savings Account which is mostly used in West Asia and South-east Asia. CASA deposit is the amount of money that gets deposited in the current and savings accounts of bank customers. … The savings accounts portion pays more interest compared to current accounts.

Can loan to deposit ratio be more than 100?

Typically, the ideal loan-to-deposit ratio is 80% to 90%. A loan-to-deposit ratio of 100% means a bank loaned one dollar to customers for every dollar received in deposits it received. It also means a bank will not have significant reserves available for expected or unexpected contingencies.

What is CD ratio formula?

Expressed as a percentage, CD ratio is computed as under: Credit-Deposit Ratio = Total Advances * 100. Total Deposits. As of end of FY13, CD ratio for Indian banking industry stood at 78.1%. The ratio has hardened above 75% in the past 2 years as high inflation has dented deposit activity.

What is CASA ratio of HDFC Bank?

The lenders current account savings account (CASA) ratio stood at around 42% as of September 30, 2020, compared to 39.3% as of September 30, 2019. The CASA ratio stood at 40.1% as of June 30, 2020.

Which is the safest bank in India?

List of Best, Safe Banks in India1) HDFC Bank. If market confidence is a measure of the soundness of a Bank, then HDFC Bank takes the cake. … 2) State Bank of India. … 3) ICICI Bank. … 4) AXIS Bank. … 7) Kotak Mahindra Bank, IndusInd Bank.

Which bank has lowest NPA in India?

Private-sector banks in India have higher capital buffer compared to state-owned peersBandhan Bank. 23.2%Kotak Bank. 22.4.HDFC Bank. 16.7.City Union. 15.7.DCB. 13.9.ICICI Bank. 13.6.Axis Bank. 13.5.IndusInd Bank. 13.2.More items…•

What is difference between current and savings account?

What is the Difference Between Current and Savings Accounts? While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the same, a current account is one where you deposit money to carry out business transactions.

Why CASA ratio is important?

The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. How is it important for banks? 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.

What is meant by CD ratio?

The Credit-Deposit (CD) ratio, which is the ratio of how much a bank lends out of the deposits that it mobilises, went up from 75% to 78% during the same period.

What is Casa sweep in HDFC?

HDFC Bank’s Sweep-in Facility enables you to earn an interest rate that’s as high as a Fixed Deposit – in your Savings Account. It also breaks deposits to make cash instantly available to you at ATMs when you’re in need of more funds than are present in your account. …

What is ideal CD ratio?

An ideal C-D ratio would be anywhere between 65 and 75. A C-D ratio of 70 means that out of every R100 that a bank raises as deposits, it lends R70.

Is HDFC Bank stable?

While HDFC Bank has said loan losses in its retail business have been stable and within expectations, that could change if India’s economic growth and employment trends continue to worsen.

What does Casa mean?

house; homeCasa definitions A house; home: sometimes used in the names of restaurants. noun. 0.