{"id":160952,"date":"2024-10-25T00:48:22","date_gmt":"2024-10-25T00:48:22","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/25\/banks-casa-ratio-drops-as-clients-opt-for-equity-mfs-times-of-india\/"},"modified":"2024-10-25T00:48:22","modified_gmt":"2024-10-25T00:48:22","slug":"banks-casa-ratio-drops-as-clients-opt-for-equity-mfs-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/25\/banks-casa-ratio-drops-as-clients-opt-for-equity-mfs-times-of-india\/","title":{"rendered":"Banks&#8217; CASA ratio drops as clients opt for equity, MFs &#8211; Times of India"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"225\" src=\"https:\/\/i0.wp.com\/static.toiimg.com\/thumb\/msid-114561618,imgsize-820358,width-400,resizemode-4\/114561618.jpg?resize=400,225&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Banks&#8217; CASA ratio drops as clients opt for equity, MFs &#8211; Times of India\" title=\"Banks&#8217; CASA ratio drops as clients opt for equity, MFs &#8211; Times of India\" \/><\/div><p> <br \/>\n<\/p>\n<div data-articlebody=\"1\">\n<div class=\"_s30J clearfix  \">\n<div class=\"MwN2O\">\n<div class=\"T22zO\">\n<section class=\"D3Wk1  clearfix id-r-component leadmedia undefined undefined  VtlfQ\" style=\"top:0px\">\n<div class=\"D3Wk1\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"zPaFh\">\n<div class=\"wJnIp\"><\/div>\n<\/div>\n<\/div>\n<div class=\"cj2hz img_cptn\"><span title=\"A man walks outside a branch of IndusInd Bank in New Delhi, September 23, 2024. (Reuters)\">A man walks outside a branch of IndusInd Bank in New Delhi, September 23, 2024. (Reuters)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<p>CHENNAI: The <!-- -->Indian banking sector<!-- --> is experiencing a decline in the current account and savings account ratio, impacting a significant source of low or no-cost funds for lenders. While CASA customers are exploring idle bank savings in <!-- -->mutual funds<!-- -->, gold, equity and SIP for better returns, banks, in turn, are attempting to retain the amount within their system by enhancing interest rates on fixed deposits and opening new accounts.<br \/>An analysis of Sept quarter results reveals that several public and private banks are recording a drop in their CASA ratios on both a quarterly and an yearly basis. For instance, <!-- -->Union Bank of India<!-- --> reported a drop in its <!-- -->CASA ratio<!-- --> from 34.7% in Sept 2023 to 32.7% in Sept 2024. <!-- -->Indian Overseas Bank<!-- --> saw a dip in the ratio from 43.7% to 42.4% over the same period. City Union Bank&#8217;s CASA percent on total deposits stood at 29% during Q2 FY25 &#8211; down from 31% in Q4 FY24.<br \/>&#8220;There has been a difference between credit and deposit rate growth rates&#8230; Money is shifting from bank deposits to other financial instruments that is putting pressure on deposits. Some banks have pressure on their net interest margin due to the decline in their CASA ratio,&#8221; Yuvraj Choudhary, research analyst at Anand Rathi Institutional Equities, said.<\/div>\n<\/div>\n<p><script>\nvar _mfq = window._mfq || [];\n_mfq.push([\"setVariable\", \"toi_titan\", window.location.href]);\n!(function(f, b, e, v, n, t, s) {\n    function loadFBEvents(isFBCampaignActive) {\n      if (!isFBCampaignActive) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        if (f.fbq) return;\n        n = f.fbq = function() {\n          n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments);\n        };\n        if (!f._fbq) f._fbq = n;\n        n.push = n;\n        n.loaded = !0;\n        n.version = '2.0';\n        n.queue = [];\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/connect.facebook.net\/en_US\/fbevents.js', n, t, s);\n      fbq('init', '593671331875494');\n      fbq('track', 'PageView');\n    };\n    function loadGtagEvents(isGoogleCampaignActive) {\n      if (!isGoogleCampaignActive) {\n        return;\n      }\n      var id = document.getElementById('toi-plus-google-campaign');\n      if (id) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        t.id = 'toi-plus-google-campaign';\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/www.googletagmanager.com\/gtag\/js?id=AW-877820074', n, t, s);\n    };\n    function loadSurvicateJs(allowedSurvicateSections = []){\n      const section =  window.location.pathname.split('\/')[1]\n      const isHomePageAllowed = window.location.pathname === '\/' && allowedSurvicateSections.includes('homepage')\n      if(allowedSurvicateSections.includes(section) || isHomePageAllowed){\n        (function(w) {\n         function setAttributes() {\n                    var prime_user_status = window.isPrime ? 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(Reuters) CHENNAI: The Indian banking sector is experiencing a decline in the current account and savings account ratio, impacting a significant source of low or no-cost funds for lenders. While CASA customers are exploring idle bank savings in mutual funds, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":160953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static.toiimg.com\/thumb\/msid-114561618,imgsize-820358,width-400,resizemode-4\/114561618.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[3331,289,43296,125395,34156,4942,989,273,125394,44926,43366,11887,11730,42990,272,23423],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/160952"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=160952"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/160952\/revisions"}],"predecessor-version":[{"id":160954,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/160952\/revisions\/160954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/160953"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=160952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=160952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=160952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}