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CASA Ratio in Banks
April 8 , 2026
14 hrs 0 min
21
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- Reserve Bank of India data shows that the CASA (Current Account Savings Account) ratio fell to a two-year low of 37.9% in December 2025.
- CASA deposits are low-cost deposits made in current and savings accounts in banks.
- The decline happened as people shifted money to higher-return options like stocks, mutual funds, and gold.
- Savings account share fell to 28.9%, leading to the overall drop in the CASA ratio.
- Lower CASA increases banks’ cost of funds, as they depend more on costly deposits and borrowings.
- This can reduce bank profits and affect their lending capacity.
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