CASA ratio to improve with lag amid falling rate: HDFC CFO

Despite the Reserve Bank of India's (RBI) 50 basis point repo-rate cut over the past three months, banks' current account savings account (CASA) ratios are unlikely to climb immediately, said Srinivasan Vaidyanathan, chief financial officer, HDFC Bank.

- SACHIN KUMAR

DESPITE THE RESERVE Bank of India's (RBI) 50 basis point repo-rate cut over the past three months, banks' current account savings account (CASA) ratios are unlikely to climb immediately, said Srinivasan Vaidyanathan, chief financial officer, HDFC Bank. Addressing analysts during the earnings call, he said CASA ratio is expected to improve only after a lag of a few quarters amid the falling interest-rate cycle. Typically, CASA ratio moves inversely to interest rates, when interest rates fall, the CASA ratio increases, but with a lag of a few quarters.