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The CASA Game

Axis Bank and ICICI Bank are the new CASA champs, while HDFC Bank and SBI have lost their first position

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The CASA (current account and savings account to total deposits) ratio is an important figure for a bank. This is because current accounts and savings accounts are the cheapest source of funds for banks as banks do not pay any interest on current accounts and pay very nominal interest of around 4-6 per cent on savings accounts. The bank sector has witnessed significant changes in the CASA standing in the last four years. The top two leaders in terms of high CASA ratio, HDFC Bank and SBI, have lost their positions to other two other banks, ICICI Bank and Axis Bank, during the same period. The main reason for HDFC Bank losing its position is a significant rise in FDs and FCNR(B) [foreign currency nonresident] deposits on accounts of high interest ratios. On the other hand, ICICI Bank and Axis Bank have attracted huge low-cost deposits.

Public sector banks

Company nameCASA (%) Dec'10 (%)Dec'14 (%)Change (%)
Companies with gain in CASA
Oriental Bank Of Commerce23.232.429.22
IDBI Bank15.0521.886.83
UCO Bank24.6529.524.86
Companies with fall in CASA
Bank Of India32.4922.94-9.55
Oriental Bank Of Commerce33.1723.66-9.51
Dena Bank35.3928.19-7.2
Indian Overseas Bank30.9723.98-6.99
Canara Bank30.524.05-6.45

Private sector banks

Company nameCASA (%) Dec'10 (%)Dec'14 (%)Change (%)
Companies with gain in CASA
Yes Bank10.222.612.4
IndusInd Bank26.8347.2
Kotak Mahindra Bank28324
Companies with fall in CASA
DCB Bank33.123.78-9.32
HDFC Bank5040.9-9.1
City Union Bank21.8617.79-4.07
Lakshmi Vilas Bank18.2214.95-3.27
Karur Vysya Bank23.5320.54-2.99