Casa keeps falling, but 2014 levels are still far

At 39.3% in Dec, ratio still far above pre-demonetization level of 31.6%

- Shayan Ghosh

Keeping savings bank interest rates largely unchanged amid rising policy rates since mid-2022 has been shrinking the share of current and savings accounts (Casa) in banks' overall deposits for a while. However, it still remains far below levels of pre-demonetization years.

Casa ratio of the banking system stood at 31.6% at the end of 2014, and surged to 37.8% in 2016 as cash flooded into savings accounts after demonetization. It continued to rise and peaked at 42.9% in December 2021, but has fallen since then, touching 39.3% at the end of December 2023, data from rating agency Icra and Mint calculations showed.

"Casa ratio shot up after demonetization and reached its peak during covid-19, prior to which it used to be in early to midthirties levels," said Anil Gupta, senior vice-president and co group head of financial sector ratings, Icra Ltd. Casa levels should remain "comfortably above midthirties", Gupta said.