Post
anupamroongta
Investing University
Tuesday Terminology #13 💥💥
CASA Ratio
CASA means Current Account, Savings Account
This ratio is used to evaluate the banking stocks.
It is calculated as
CASA deposits ÷ Total deposits
Total Deposits includes CASA Deposits + Fixed Deposits (FDs).
Higher the CASA for a bank, the better it is. 🔥
Why?
Interest to be paid by the bank in Current Account is zero and very low in Savings account.
Therefore, high CASA Ratio means that the bank has got low-cost funds from its customers.
Find out the CASA Ratio for HDFC Bank & Yes Bank. Google it.
Let me know your findings by replying here.
Caution: This is not the only ratio to look at while investing in banking stocks.
Aug 11 1:41 PM
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