MUMBAI:
Regional rural banks (RRBs), which are seen as a vehicle for
financial inclusion, have managed to generate more current and
savings accounts (CASA) than commercial banks and even some large
private banks.
The share of low-cost deposits, or CASA, for such banks was 54.3% at the end of December 2013, compared with 43.89% for the country's largest lender, State Bank of India, and just 24.3% for Canara Bank
"This is even higher than certain private banks. Compared with their sponsor banks, RRBs have had a much higher CASA," said Harsh Kumar Bhanwala, chairman of National Bank for Agriculture and Rural Development (NABARD), which supervises RRBs. The ratio for ICICI Bank and HDFC Bank was 43.3% and 41%, respectively.
Until a few years ago, commercial banks relied heavily on CASA to bring down their cost of funds. But even large and successful banks have not been able to increase the share of CASA over the past 2-3 years as deposits have been hard to come by due to the economic slowdown.
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/rrbs-pull-ahead-of-the-biggies-net-higher-casa/articleshow/31324016.cms
The share of low-cost deposits, or CASA, for such banks was 54.3% at the end of December 2013, compared with 43.89% for the country's largest lender, State Bank of India, and just 24.3% for Canara Bank
"This is even higher than certain private banks. Compared with their sponsor banks, RRBs have had a much higher CASA," said Harsh Kumar Bhanwala, chairman of National Bank for Agriculture and Rural Development (NABARD), which supervises RRBs. The ratio for ICICI Bank and HDFC Bank was 43.3% and 41%, respectively.
Until a few years ago, commercial banks relied heavily on CASA to bring down their cost of funds. But even large and successful banks have not been able to increase the share of CASA over the past 2-3 years as deposits have been hard to come by due to the economic slowdown.
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/rrbs-pull-ahead-of-the-biggies-net-higher-casa/articleshow/31324016.cms
No comments:
Post a Comment