What is CASA ratio?
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.

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice
nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes
are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Please read at www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
Copyright © 2009 DayTradingShares.com. All Rights Reserved.
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. Many banks donít 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 ratios better the net interest margin, which means better operating efficiency of the bank. Net interest margin is difference between total interest income and expenditure and is shown as a percentage of average earning assets. Higher income from CASA will improve the net interest margin as the cost of this fund is relatively lower.

For instance, most banks lend at over 10%, whereas, the rate of interest that they pay on saving deposit is just 3.5%. However, actual realisation depends on other expenditure, too.
How is CASA different from term and demand deposits?
Current and saving accounts remain operational. Depositors donít need to give prior notice to withdraw money, however, in case of term deposits; the money is locked in for a specific period. If a depositor wishes to withdraw the money before maturity, he may have to pay a fine. Usually, an overdraft facility is available with the current account deposit. Demand deposit gives you the facility to withdraw your money anytime.
Your Desire To Earn
online buying selling,online share market trading,trade,stock trading,best online stock trading,Free stock recommendations,buy sell stock signals,BSE,NSE,trading tips,indicators,advice,investing,education,Free India share tips,stock market picks,shares, online buying selling,cheapest,discount
Day Trading Shares          
Welcome to the Indian Share Market
day trading training,daytrading stocks,daytrading free tips,day trading made easy,university system strategies rules learn day trading,online daytrading,stock course software strategy futures online systems sites signals,stock market forum learn courses free day trading techniques
making profit in day trading tips,daily earn profit,earning high profit,free stock recommendations,buy sell stock signals BSE NSE trading tips,stock market indicators,advice stock market investing,free day trading stock pick,education trading,free India share tips,online share trading increase profit,news share market report strategy,stock profit,stocks market trading software,free share market tips
D T S
investment,financial investment,companies,finance,funds,market,investment online services,return on investment,best,bond,bonds,corporate,bse India,bse live,market,bse trading,high return,high yield,advice,growth,information,opportunities,securities,strategy,long term trading,shares,stocks
Get Free Advice
About what is intraday trading,basics,best,block deal in nse bse intraday,bse intra day,bse calls,charts,data,intraday tips,how to do intraday trading,intra day tips,charts
charting software,graph,indicator,margin,news,picks,price,recommendation,recommendations,sms,softwares
stock screener,stock tips,stock trading calls,stocks,strategies,technical analysis,techniques,tips for nse,on mobile,trade,traders,analysis,in stock market,intraday trading India
what is intra day trading,methods,rules,strategy,system,tactics,techniques,tips,bse sensex,tutorials,volatility,live chart,metastock,nifty chart,sensex,stock chart,stock market intraday tips,intra day tips,free tips
making profit,trading tips,daily earn profit,earning high profit,free stock recommendations,buy sell stock signals,BSE,NSE,trading tips,stock market indicators,advice stock market investing,free day trading stock pick,education trading,free India share tips,online share trading
Home Page
Useful sites
Readers
Our Target
Researched Stocks
     Quick Learning

  What is CASA ratio