The Reserve Bank of India (RBI) has revealed that the share of low-cost current and savings accounts (CASA) in total bank deposits fell to 37.9% in the December 2025 quarter, a decline from 40.1% in December 2024. This drop is primarily driven by a 210 basis point decrease in savings accounts, which now account for 28.9% of total deposits. Depositors are shifting their funds towards higher-yielding investments like equities and mutual funds, leading to a slowdown in deposit mobilization. Despite this, overall bank deposits increased by 10% year-on-year, reaching ₹239.8 lakh crore. However, the growth rate is slower compared to the previous year's 11%. The CASA decline is concerning for banks as it raises their funding costs, forcing them to rely more on higher-cost term deposits and market borrowings. The credit-deposit (CD) ratio has surged to an all-time high of 83.0%, indicating that credit growth is outpacing deposit growth. Total bank credit stood at ₹207.7 lakh crore, reflecting a 13.5% increase year-on-year.