New Delhi, Nov. 14 -- The share of low-cost deposits held by Indian banks declined to 34.4 per cent in the July-September quarter of FY27, compared to 35.6 per cent in the preceding quarter, even as overall deposits recorded strong growth, according to a report by 360 ONE Capital.

In its banking sector research report titled "Banks - 2QFY27 Results Review," the brokerage attributed the decline in the Current Account Savings Account (CASA) ratio to strong inflows into Foreign Currency Non-Resident (Bank) or FCNR(B) deposits.

The report stated, "Strong FCNR (B) flows also resulted in a decline in CASA ratio to ~34.4% versus 35.6% in 1Q with PVBs/PSBs CASA ratio declining by ~150/90 bps QoQ to 33.9%/34.8% in 2Q."

CASA represents deposits ...