Vijaya Bank to tap North India to push Casa ratio

To increase the share of low-cost deposits in the total resource base, Vijaya Bank is coming up with special offers for current and savings account holders.

The bank is also relying on the branches it plans to open in the northern region to push its current account-savings account (Casa) ratio in the overall deposit book.

“We are aggresively pushing Casa in our overall deposit book for the last two years. Casa ratio, which was 22 per cent two years back, has reached 24.6 per cent due to these efforts. We would like to see the ratio to be higher than the present ratio in the near future,” said Albert Tauro, chairman and managing director of Vijaya Bank.

He said the bank has introduced liberal remittances for depositors along with certain concession for current account holders to increase its Casa portfolio. The government had recently asked banks, like IDBI, UCO Bank, Oriental Bank of Commerce and Vijaya Bank, to increase their Casa to 30 per cent of the total deposits as it has a direct bearing on their profitability and net interest margin.