What is CASA

CASA means current and savings account ratio, CASA ratio is an important factor when it comes to looking into the P & L and balance sheet of the bank. In simple words CASA ratio tells how much current and saving account deposits bank has out of total deposits.

Since bank has to give lower rate of interest on saving and current deposits when compared to term deposits and that is the reason why a higher CASA ratio is a good sign when it comes to profitability of the bank, but on the flip side a higher CASA ratio would mean that liquidity position of the bank may not be that good as current and saving deposit can be withdrawn more frequently and easily as compared to term deposits.

0 comments… add one

Leave a Comment

Related pages

horizontal analysis in accountingliquidity ratios listwho is consignee and consignorfull form of slr in bankingadvantages and disadvantages of nationalisationlaw of diminishing returns exampleadvantages and disadvantages of market penetration strategywithdrawal slip in bankdefinition of indirect quoteconcept of materialityservices rendered accounting entryadvantages and disadvantages of industrializationwhat is the difference between a creditor and a debtoradvantage of debit cardwhat are the disadvantages of social networkingmonopolistic competition companyaccelerated method of depreciationprepaid insurance journal entry examplefdi and fii meaningadvantages and disadvantages of venture capitalmixed economy wikiadvantages and disadvantages of marginal costingcredit sales accounting entryexamples of capital receipts and revenue receiptseps advantages and disadvantageswhat is meaning of consigneeloan advantages and disadvantageswhat is the difference between cumulative and noncumulative preferred stockexample of barter systemjournal entry for prepaymentthe disadvantages of globalizationdifferent types of chequesunearned rent revenuepreference shares advantages and disadvantagesformula for working capital turnover ratiocheque vs draftwhat are examples of current liabilitieswhat are the limitations of ratio analysisunsystemic riskdistinguish between socialism and capitalismrapid skimming strategy examplesdual aspect concept of accounting with examplesexplain the expenditure method of measuring national incomewhat is marginal costing in cost accountingwhat are current liabilities examplesrtgs full meaningsimilarities between socialism and capitalismunbilled revenue accountingesop full formexplain debentureswhat is the difference between accounting profit and economic profitadvantage and disadvantage of mixed economywhat is the full form of cpidifference between wholesaler and retailerunearned revenue in accountingmanaged float exchange rate systemdemerits of industrializationhorizontal and vertical analysis of a financial statementdiscounting of bill of exchangeadvantages of autocracy governmentintraday transactionproduct bundling strategyformula for operating leveragevertical analysis of financial statementdiscounting a billexamples of inferior goodsnestle advantages and disadvantagesprepaid expdisadvantages of a command economyadvantages and disadvantages of oligopolydisadvantages of financial accountingorder cheque and bearer cheque