<P> CASA ratio stands for current and savings account ratio . CASA ratio of a bank is the ratio of deposits in current and saving accounts to total deposits . A higher CASA ratio indicates a lower cost of funds , because banks do not usually give any interests on current account deposits and the interest on saving accounts is usually very low 3 - 4 % . If a large part of a bank 's deposits comes from these funds , it means that the bank is getting those funds at a relative lower cost . It is generally understood that a higher CASA ratio leads to higher net interest margin . In India , it is used as one of the metrics to assess the profitability of a bank . </P>
<P> CASA ratio stands for current and savings account ratio . CASA ratio of a bank is the ratio of deposits in current and saving accounts to total deposits . A higher CASA ratio indicates a lower cost of funds , because banks do not usually give any interests on current account deposits and the interest on saving accounts is usually very low 3 - 4 % . If a large part of a bank 's deposits comes from these funds , it means that the bank is getting those funds at a relative lower cost . It is generally understood that a higher CASA ratio leads to higher net interest margin . In India , it is used as one of the metrics to assess the profitability of a bank . </P>
what is full form of casa in banking
what is full form of casa in banking
current and savings account ratio
current and savings account ratio