CASA Ratio

How cheap the bank's funding is.

A 45% CASA ratio CASA stands for Current and Savings Accounts. These pay little or no interest, so they're cheap funding for a bank. The CASA ratio is the share of deposits held in these low-cost accounts. A higher ratio means cheaper funding and usually fatter margins. CASA ratio = (Current + Savings deposits) ÷ Total deposits × 100 Of Rs 1,000 deposits, Rs 450 are in current and savings accounts. CASA = 45%. Shows funding cost advantage Higher CASA supports margins A sign of strong retail reach Can fall when savers chase higher rates Definitions vary Not the whole profitability story

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Banks.