It is the ratio of deposits in Current Account and Saving Account of a bank to its total deposit.
High CASA Ratio
- It indicates that a higher portion of the banks deposits come from current and savings accounts.
- This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low.
Formula of CASA Ratio = Deposits in Current and Saving Accounts /Total Deposit