Casa
Finding and Recommendations
Findings
1. Banks Have Gradually Loosing, Benefit on Savings Bank Deposit.
Saving deposits are low cost deposits and bank has been losing the benefit on savings bank account because of deregulation of interest rate. So now saving bank customer has cake in their hand and also eats more ie customer has get more benefit and it will squeeze the profit of bank.
2. CASA Deposit Influence On Offering of Term Deposit
The strong CASA base provides the necessary comfort to offer competitive rates on fixed deposits and finer rates to loan products. Hence, the pressure on Banks for mobilization of CASA deposits in increasing day by day. To make good of the possible decline of CASA balances, some Banks are strategically drifting towards mobilization of short term deposits by offering better rate of interest than saving deposits.
3. CASA Which is Insulting Market Fluctuation And Risk Etc So CASA is Considered As Safety Deposit to the Bankers.
The CASA deposits are the low cost deposits, it insulating to a greater extent against the market fluctuations, uncertainties and risks. In other words, the CASA deposits are the safest avenue available to Bankers, so as to withstand the market pressures and tactics that are aiming to squeeze the spreads/profits.
4. Growth of Bank Balance Sheet Mainly Depends Upon Deposit Growth.
Because most of fund flowing from deposit from depositors, around 40-50% of the deposit is flowing from current and savings account deposit, so that growth of bank deposit sheet mainly depends upon deposit growth.
5. Scope And Potentiality For CASA Growth is Immense As The Economic And Social Indicators are More Favorable Inclined to Stronger Support.
The potentiality for the CASA growth is immense as the economic and social indicators are more favorably inclined to a stronger support. Indicate the
Findings
1. Banks Have Gradually Loosing, Benefit on Savings Bank Deposit.
Saving deposits are low cost deposits and bank has been losing the benefit on savings bank account because of deregulation of interest rate. So now saving bank customer has cake in their hand and also eats more ie customer has get more benefit and it will squeeze the profit of bank.
2. CASA Deposit Influence On Offering of Term Deposit
The strong CASA base provides the necessary comfort to offer competitive rates on fixed deposits and finer rates to loan products. Hence, the pressure on Banks for mobilization of CASA deposits in increasing day by day. To make good of the possible decline of CASA balances, some Banks are strategically drifting towards mobilization of short term deposits by offering better rate of interest than saving deposits.
3. CASA Which is Insulting Market Fluctuation And Risk Etc So CASA is Considered As Safety Deposit to the Bankers.
The CASA deposits are the low cost deposits, it insulating to a greater extent against the market fluctuations, uncertainties and risks. In other words, the CASA deposits are the safest avenue available to Bankers, so as to withstand the market pressures and tactics that are aiming to squeeze the spreads/profits.
4. Growth of Bank Balance Sheet Mainly Depends Upon Deposit Growth.
Because most of fund flowing from deposit from depositors, around 40-50% of the deposit is flowing from current and savings account deposit, so that growth of bank deposit sheet mainly depends upon deposit growth.
5. Scope And Potentiality For CASA Growth is Immense As The Economic And Social Indicators are More Favorable Inclined to Stronger Support.
The potentiality for the CASA growth is immense as the economic and social indicators are more favorably inclined to a stronger support. Indicate the