The CASA (Current Account and Savings Account) ratio is indeed a key financial metric for banks, especially in the public sector. It measures the proportion of low-cost deposits (current and savings accounts) to total deposits.
A higher CASA ratio implies that a larger share of the bank’s deposits comes from current and savings accounts, which typically have lower interest rates compared to fixed deposits. This lowers the bank’s overall funding costs and improves profitability, making it an important indicator of a bank’s financial health and operational efficiency.
Here are the three such banking stocks with high CASA ratios:
With a market capitalization of Rs.6.98 lakh crore, the shares of State Bank of India closed at Rs.784.50 per share on Friday, 0.69 percent lower than its previous close.
As of June 2024, the State Bank of India reported a CASA ratio of 40.7 percent, reflecting the growth in CASA deposits to Rs.19,14,440 crore, up from Rs.18,66,059 crore a year earlier. Additionally, Net Non-Performing Assets (Net NPA) saw a reduction of 0.14 percent.
According to its recent financial updates, the bank reported Net Interest Income of Rs.1,18,242 crore in Q1 FY25, marking an increase of 16.5 percent from Rs.1,01,460 crore in Q1 FY24. Net profits increased 5.3 percent to Rs.20,094 crore from Rs.19,094 crore in the same period.
With a market capitalization of Rs.52,172 crore, the shares of the Central Bank of India closed at Rs.60.88 per share on Friday, 4.57 percent higher than its previous close.
As of June 2024, the CASA ratio of the Central Bank of India was 49.19 percent, reflecting the growth in CASA deposits to Rs.1,88,863 crore, up from Rs.1,80,091 crore a year earlier. Moreover, Net Non-Performing Assets (Net NPA) increased by 0.73 percent.
In its recent financial update, the bank reported a Net Interest Income of Rs.8,367 crore for Q1 FY25, up 15.3 percent from Rs.7,259 crore in Q1 FY24. Net profits saw a significant increase of 90 percent, rising to Rs.945 crore from Rs.498 crore year-over-year.
With a market capitalization of Rs.51,131 crore, the shares of Bank of India closed at Rs.110.5 per share on Friday, rising 0.45 percent from its previous close.
As of June 2024, the Bank of India had a CASA ratio of 42.68 percent reflecting the growth in CASA deposits to Rs.2,74,973 crore, up from Rs.2,60,615 crore a year earlier. Additionally, Net Non-Performing Assets (Net NPA) decreased by 0.23 percent.
In its latest financial update, the bank reported a Net Interest Income of Rs.17,046 crore for Q1 FY25, marking an 18 percent increase from Rs.14,442 crore in Q1 FY24. Net profits rose by 21 percent, reaching Rs.1,890 crore compared to Rs.1,562 crore in the previous year.
Written by – Siddesh S Raskar
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