I personally don’t think it’s a big issue – CASA ratios are declining across most banks because people prefer to park their money in FDs owing to the highest interest rates we’ve seen in a long time.
Additionally, in the last earnings call, the management referred to their TD base (non CASA deposits) as the “most stable Term Deposit base” with 62% of it being less than 2 crores. Individual ticket sizes were said to be in the range of 4.5 to 5 lakhs, which means that there are a large number of depositors, reducing risk. Out of the term deposits with higher ticket sizes, they mentioned that more than 90% of the book was non-callable which should be comforting for them for the next year or so.
Disclosure – Invested & biased
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