Higher the CASA ratio, lower the base rate, says SBI
By Vaibhav Aggarwal
Jun 30, 2010
Print    Email    RSS   

The largest lender of the country, State Bank of India has set its base rate at 7.5%.

This is not going to be a major concern for investors and corporates as only 3% of the total corporate lending of the bank is below 7.5%. So there will not be much re shuffling of the lending portfolio even after implementation of base rate.

The relatively low positioning of SBI’s base rate can be accounted to its higher current and savings account (CASA) deposits.

The bank’s share of CASA deposits at 47% is second only to HDFC Bank.

There are only a few banks in the country which can count for their CASA deposits at around 30%.

Two other large state-owned banks, Bank of Baroda and Punjab National Bank, have positioned their base rate at 8%.

While the share of CASA deposits was 36% for BoB Punjab National Bank was in a better position at 41% in FY 10.

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

A chronicle of excesses by loan recovery...
Consolidation good for creating healthier...
Pay income tax through ATM
Glittering Ways of Investing in Gold
How far can new banking licenses be banked...

HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive