📊 Important Update: Bank CASA Ratio falls to 37.9% (2-Year Low)
Aspirants, this is a crucial General Awareness update for your upcoming Mains and Interviews.
What happened?
The share of low-cost Current and Savings Accounts (CASA) in total bank deposits has hit a 2-year low.
Key Data Points:
Current Ratio: 37.9% (Dec 2025 Quarter)
Previous Comparison: 40.1% (Dec 2023)
Credit-Deposit (CD) Ratio: Touched an all-time high of 83.0%.
Impact on Banks:
Higher Cost of Funds: Banks are now forced to raise money via Certificates of Deposit (CDs) at rates as high as 7.5% - 8.3% instead of the cheap 3-4% from Savings Accounts.
Margin Pressure: This sustained erosion in CASA compresses the Net Interest Margin (NIM) of banks.
Why is this happening?
Depositors are increasingly shifting funds to higher-yielding alternatives such as Equities, Mutual Funds, and Gold.

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