Full formBanking & Finance
CASAstands forCurrent Account Savings Account
Full Form of CASA
What is CASA?
CASA stands for Current Account Savings Account, a term widely used in Indian banking to denote the proportion of a bank's total deposits that come from current and savings accounts. These deposits typically carry lower interest rates compared to term deposits, making them a cheap and stable source of funding for banks. The CASA ratio is a key performance metric; a higher ratio indicates better profitability and lower cost of funds. In India, this ratio is closely tracked by analysts, investors, and banking regulators such as the Reserve Bank of India (RBI). CASA deposits are considered sticky and provide liquidity to banks, especially for retail operations. The term is commonly used in bank annual reports, quarterly earnings presentations, and financial news. For students preparing for banking exams like IBPS PO, SBI Clerk, or RBI Grade B, understanding CASA is crucial as it appears in financial awareness sections. It also helps in evaluating a bank's operational efficiency and competitive positioning. Overall, CASA is a fundamental concept in Indian banking and finance.
CASA का फुल फॉर्म
चालू खाता बचत खाता
Example
The State Bank of India reported a robust CASA ratio of 43.5% for the quarter, reflecting strong low-cost deposit growth.
CASA — frequently asked questions
What is the full form of CASA?
CASA stands for Current Account Savings Account. It represents the deposits in a bank's current and savings accounts, which are low-cost sources of funds.
Why is the CASA ratio important in Indian banking?
A higher CASA ratio means a bank has more low-cost deposits, leading to better net interest margins (NIM) and profitability. It is a key indicator of a bank's operational efficiency.
How does CASA affect a bank's performance in India?
Since CASA deposits carry lower interest rates, they reduce the bank's cost of funds. A strong CASA ratio helps banks maintain higher profits even when lending rates are low.