SBI aims to better CASA ratio to 40% to lower funding cost, says chairman

STATE BANK OF India (SBI) aims to bring back its current account-savings account (CASA) ratio to 40%, which will reduce costs and protect its net interest margins, chairman CS Setty said during an analyst call.

- SACHIN KUMAR

The bank's CASA ratio has consistently declined over the past two years, falling to 39.20% at the end of December 2024, from 43.80% in March 2023.

In the last nine months, we have acquired 950,000 customers and salary customer accounts, which means the CASA ratio would come back to 40%. That is our target, which would also bring down the cost of resources," said Setty.

The bank's CASA ratio has declined from 41.11% in March 2024 to 40.7% in June and to 40.03% in September. The entire banking sector is witnessing the trend of CASA contraction as depositors have been moving funds to high-yield fixed deposits.