What is CASA Ratio? CASA stands for Current Account and Savings Account, and the CASA Ratio is a key metric used to measure the proportion of a bank’s total deposits that come from these two sources. Since CASA deposits are a low-cost source of funds for banks, a higher CASA ratio indicates better financial efficiency […]
Deposit Growth in Banking: Trends, Formula, Impact & Key Drivers
What is Deposit Growth? Deposit growth refers to the increase in the total amount of deposits that customers place with banks over a specific period. It is a vital indicator of a bank’s liquidity, customer confidence, and overall financial health. A steady rise in deposits not only supports the bank’s lending activities but also enhances […]
Credit Growth in Banking: Trends, Formula, Impact & Key Drivers
What is Credit Growth? Credit growth refers to the increase in the total amount of loans and advances provided by banks and financial institutions over a given period. It serves as a critical indicator of economic activity, reflecting how much banks are lending to businesses, consumers, and other sectors. Strong credit growth generally signals expanding […]
Provision Coverage Ratio (PCR) in Banking: Definition, Calculation & Example
What is Provision Coverage Ratio (PCR)? The Provision Coverage Ratio (PCR) is a vital financial metric used by banks to assess the quality of their loan portfolios. PCR measures the extent to which a bank has made provisions to cover its non-performing assets (NPAs). Essentially, it indicates how well a bank can absorb losses from […]
Net Non-Performing Assets (NNPA) Ratio in Banking: Definition, Calculation & Example
What is the NNPA Ratio? The Net Non-Performing Assets (NNPA) Ratio is a key metric used to assess a bank’s asset quality. Unlike the GNPA ratio, which measures the total non-performing assets, the NNPA ratio accounts for the bank’s provisioning against bad loans. This ratio gives investors a clearer picture of the bank’s actual credit […]
Gross Non-Performing Assets (GNPA) Ratio in Banking: Understanding Its Importance, Calculation & Example
What is the GNPA Ratio? The Gross Non-Performing Assets (GNPA) Ratio is a key indicator of a bank’s asset quality. It measures the percentage of loans and advances that have turned into non-performing assets (NPAs) relative to the total loans disbursed by the bank. A high GNPA ratio signals deteriorating asset quality, while a low […]