CASA deposits of SBI declined to 39.97 per cent of domestic deposits as of March-end 2025 from 41.11 per cent as of March-end 2024
| Photo Credit:
RUPAK DE CHOWDHURI

With low-cost current account, savings account (CASA) deposits dipping below 40 per cent of domestic deposits, State Bank of India (SBI) is planning to step up focus on cash rich segments such as hotels, hospitals, education institutions, and religious institutions (HHEIRs) and Trusts, Associations, Societies and Clubs (TASCs) to garner these deposits and protect its net interest margin.

Even as CASA deposits dropped below the crucial 40 per cent level, high-cost term deposits of India’s largest bank increased a shade above 60 per cent of its domestic deposits.

In the current falling interest rate environment, which has been ushered in with a cumulative repo rate cut of 50 basis points since February 2025, the Bank is making a concerted push for shoring up CASA deposits, according a senior executive.

The Bank is doing this by stepping up customer outreach (including connecting with customers who are at risk of moving to other banks or have already left and those whose transaction activity has stagnated), deepening relationships with existing customers, ensuring synergy among verticals such as retail, commercial and corporate banking, he said.

CASA dips below 40%

CASA deposits of India’s largest Bank declined to 39.97 per cent of domestic deposits as of March-end 2025 from 41.11 per cent as of March-end 2024. Simultaneously, high-cost term deposits rose to 60.03 per cent of domestic deposits from 58.89 per cent.

Due to the fall in CASA deposits and increase in high cost term deposits, the Bank’s cost of domestic deposits rose to 5.11 per cent as at March-end 2025 against 4.81 per cent as at March-end 2024. This shift in the composition of deposits came as depositors’, in their quest for higher returns, moved funds from savings and current account to term deposits.

Besides HHEIR and TASC segments, SBI will also focus on traders, small and medium enterprises (SMEs), corporates and start-ups to increase traction in CA (current account) deposits. The Bank also plans to have dedicated relationship managers for providing doorstep services to new-to-bank and existing-to-bank customers.

When it comes to SA (savings account) deposits, SBI is seeking to bolster its customer reach by focusing on salary package accounts, opening high-value deposit accounts, developing products for young customers, including school and college students, and popularising digital platforms, including mobile banking app YONO and internet banking.

Published on May 11, 2025