How the bank is judged

CASA ratio: the one number that tells you how cheaply a bank is funded

The share of a bank's deposits sitting in current and savings accounts — higher means cheaper funding and a stronger margin.

40%

CASA ratio

illustrative

Why it matters

It links your branch's daily effort to how the market judges the bank. "CASA slipped to 39%" means funding got pricier this quarter — it's the fastest read on funding quality.

A worked example

₹3.2 lakh cr of CASA out of ₹8 lakh cr total deposits = a 40% ratio. So 40% is near-free money, 60% costly FDs. A falling ratio quietly squeezes NIM next quarter.

The picture

What it leads to

This is where the killer path closes the loop: repo rate → branches raise cheap CASA → cost of funds drops → NIM widens → the CASA ratio makes the whole strategy visible in the bank's results.

Where it sits in the map

Follow the causation

this is the branch-level effort that produces the ratioWhy branches push CASA→this is the margin a high CASA ratio protectsNet Interest Margin (NIM)→this is the funding cost a high CASA ratio pushes downCost of funds→