The bank increases the proportion of CASA

3 min read

According to the Companion’s statistics, in 2020, the proportion of demand deposits (CASA) in the customer deposit structure at 23/25 banks has been raised. VietBank and Kienlongbank are 2 units that reduce the CASA rate by 1 and 2 percentage points, down to 3% and 4%, respectively. These are also 2 out of 3 banks with the lowest index in the system, after BacABank at 2%.

Contrary to the above 3 banks, most of the banks have promoted the attraction of CASA at a higher rate than the general deposit growth. Techcombank is the largest bank improvement in 2020. CASA of this unit increased by 62%, 3 times higher than the deposit growth rate, only 20%. The proportion of CASA increased from 33% to 44% with more than 122,972 billion VND.

Techcombank rose from second position to the top in CASA ratio, surpassing the next two banks, MB and Vietcombank with 37% and 30%.

In 2020, MB’s CASA increased by nearly 25% compared to the end of 2019, to VND 115,194 billion, while general customer deposits increased by 14%. Vietcombank recorded a CASA growth of 17%, at 307,026 billion, while the size of deposits increased by 11% to over 1 million billion.

CASA tại các ngân hàng Việt Nam. Đơn vị tỷ đồng, %.

CASA in Vietnamese banks. Unit: billion dong,%.

Vietcombank, MB and Techcombank are the three banks competing in the top tier with the CASA race. Techcombank, with the policy of “zero fee”, free all online transactions for individual customers, since 2016 and expanded to corporate customers since 2018, has contributed to increasing the proportion of CASA doubled in The past 5 years. MB also offers a free money transfer program through an online application.

Recently, Vietcombank also announced a program to attract demand deposits, 4 service packages including VCB-Eco, VCB-Plus, VCB-Pro and VCB-Advanced, with other free online transaction policies.

Like the VCB-Eco package, users who maintain an average monthly demand balance of 2 million VND or more will be free of charge in Vietcombank system, but charged if they transfer money outside the Vietcombank system. With the packages of VCB-Plus, VCB-Pro and VCB-Advanced, there are some other incentives with the requirement to ensure that the average monthly balance in the account is over VND 4 million, VND 6 million and VND 10 million.

Ban Viet Securities (VCSC) has said that while banks actively attract retail CASA, Vietcombank makes a difference when focusing on mobilizing CASA from businesses, this is a rather difficult method to finance. products continued to expand, having occupied the largest market share in this segment. However, with the recent move, Vietcombank also shows its orientation to increase CASA in retail customers.

VCSC forecasts that Vietcombank’s CASA rate will remain at 31% of customer deposits in 2020-2021.

In the middle group of the list, all other banks have attempted to increase the proportion of CASA. MSB increased from 20% to 26%, while ACB increased from 18% to 21%. Most of them have demand deposit ratio in the structure from 12% to 15%, possibly to destinations such as Eximbank, VPBank, Sacombank, VIB … Some units have CASA ratio below 10% such as SHB, NCB, NamABank. …

In the development trend of retail banks, increasing CASA has become a strategy of many banks, helping to get cheap capital, improve net interest income and compete for lending rates.

VPBank CEO Nguyen Duc Vinh at the meeting with an analyst who made increasing CASA become the top goal of the bank, to reduce capital costs by promoting digitalization to serve customers’ payment transaction needs. row.

On the other hand, the accompanying policies to attract CASA such as free money transfers, free online transactions … also attract new customers to the bank with idle cash flow. The customer base will be the basis for banks to source income from other activities, offset the sacrifice of transaction fees.

In the context of Covid-19 translation changing customers’ behavior, online transactions and electronic payments become the main trend, banks that develop good technology systems, along with free transaction fees will attract customer.

 

Source: ndh.vn – Translated by fintel.vn