CASA loosing its sheen but smaller bank still seek CASA

Current Account Savings Account (CASA) were at one point of time apple of the eyes of every banker, where the banks amassed a large corpus of funds from the public at very low cost. But slowly the CASA component of banks' total deposits have been depleting.

Current Account which have no interest given on them are generally maintained by businesses, with added benefit of overdraft facility; Savings account on the other hand are low interest offering deposits maintained primarily by salaried class to keep their earnings.

Of late, HDFC Bank, one of the leaders in CASA strategy saw its CASA percentage reduce from 49% to 46%. Analysts predict that the CASA is bound to go down, since developing economies tend to save less. But smaller banks like Bank of Maharashtra and Vijaya Bank are seeing this as an opportunity and have launched campaigns to acquire more CASA deposits.