How much of the bank's money comes from cheap everyday accounts?
CASA Ratio (CASA)
Bank numbers
CASA ratio is the share of deposits kept in current and savings accounts, which cost the bank little in interest.
In everyday life
A bank pays about 3% on a savings account but 7% on a fixed deposit. The more of its money sits in savings and current accounts, the cheaper its raw material.
How it's worked out
Example: Lotus Bank, a made-up company that takes deposits and gives loans.
In words: ₹40 of every ₹100 deposited sits in cheap current and savings accounts.
Try it yourself
Move the sliders and watch the answer, the picture and the verdict change together.
₹40 of every ₹100 deposited sits in cheap current and savings accounts.
- Current + savings deposits
- The rest
Each dot is 1 of every 100 in “all deposits”.
Rough guide
- Low
- Decent
- Strong
What's a good number?
- Low
Up to 30%
- Decent
30% to 40%
- Strong
Above 40%
A high CASA ratio lets a bank lend at good rates and still earn a healthy margin.
Key number in the sector guides for Banks.
How to read it
Good signs
- CASA ratio steady or rising as the bank grows.
Watch out for
- Falling CASA: customers are moving money to fixed deposits or other banks, raising the bank's costs.
Read it with
For learning only. Example companies are made up, and the rough guides are rules of thumb, not targets. Nothing here is advice to buy or sell any stock.