Negative impactOrders & Deals
ICICI Bank’s CASA ratio drops 340 bps to 36.1% as FCNR (B) deposits surge
Economic Times 7 hrs ago·20 Oct 2026, 12:17 am
ICICI Bank’s cost of funds has increased, as the bank’s share of low-cost current account savings account (CASA) deposits fell by 340 basis points to 36.1%. This shift occurred because the bank attracted a significant amount of higher-cost foreign currency non-resident (B) (FCNR(B)) deposits. While this boosts the bank's foreign currency liquidity, it also raises the average cost of funds, which can pressure profitability.
This development matters to investors because a lower CASA ratio typically compresses the bank's Net Interest Margin (NIM). The bank reported that its NIM contracted by 18 basis points sequentially, reflecting the impact of these costlier deposits. However, the bank’s net interest income still grew by 18% year on year, indicating strong loan growth is offsetting the margin pressure.
Investors should watch the bank's ability to re-price these foreign currency deposits and manage its loan growth to stabilize the NIM. The focus will be on whether the bank can maintain its profitability momentum despite the higher cost of funds.
Affected stocks
Bearish1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns ICICI Bank (ICICIBANK).
- Category: Orders & Deals.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update for ICICI Bank worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
