"Banks’ CASA deposits grow 33%: What it means"

India’s banks saw a 33% rise in CASA deposits in FY13, the Reserve Bank of India said on Wednesday. CASA is the amount of money customers put in banks’ current and savings accounts. It is an important metric to understand a bank’s profitability. An increase in CASA deposits helped overall bank deposits grow 15.1% in the fiscal from a 14.9% growth in FY12, the RBI added. This means Indians are putting more money in bank accounts. Here’s all you need to know about bank deposits and CASA: 1. Banks offer two main kinds of accounts where customers can keep their money. These could be term deposits – like fixed and recurring deposits, or non-term deposits – like current and savings accounts. In return, they pay interests to customers. 2. A term deposit, like the name suggests, is valid for a certain period of time. For example, you put in Rs 1000 in a fixed deposit for a period of 5 years. In return, the bank pays you an interest at the rate of 10% per annum, with the condition that you will not touch the money. 3. A current and savings account, on the other hand, is a normal bank account used for your daily operations. It is valid for as long as the customer likes. A savings account is for individuals while a current account is for companies. These have lower interest rates than term deposits. Slideshow - India's best banks in 2013 HDFC is the winner in large banks category.Overall score: 2,293.13(Photo: Reuters Pictures) 1 / 10 India Today Group Share to FacebookShare to TwitterShare to Pinterest ClosePrevious imageNext image4. Banks give out this deposit money as loans on which they charge a higher interest. This difference in the interest between loans and deposits earns profits for banks. This is called Net Interest Income (NII). 5. Effectively, deposits are banks’ borrowings while loans are its assets. However, deposits are important despite being a liability. Higher the deposits---preferably at lower interest rates, the greater is the capacity of a bank to offer loans and earn interest income. 6. Since interest rates are much lower than term deposits, CASA is an important and a cheaper source of funds for banks. For this reason, analysts also look at the ratio of deposits in bank accounts to total deposits. This is called CASA ratio. A high CASA ratio reflects the bank’s ability to raise money with low costs. 7. Apart from this, banks also borrow from each other or the RBI. However, the RBI has kept interest rates high. This means banks incur more costs while borrowing from the RBI. On the other hand, there is rise in bad loans along with a fall in demand for loans. In FY13, growth in bank credit or lending slowed to 13.6% from 17.1% in the previous fiscal. 8. This is affecting the profitability of banks, measured by Net Interest Margin (NIM), which fell to 2.8% in the fiscal ended March 2013 from 2.9%. 9. For this reason, banks are aggressively reaching out to retail customers to increase their deposits. This helps lower the cost of borrowing. 10. According to RBI data, private sector banks have seen a higher increase in CASA due to higher savings deposit rate – the interest rate on savings accounts. This is particularly so for the new set of private banks, whose CASA deposits grew 18.5%.

"THE UNSTOPPABLE by Sandeep Maheshwari in Hindi (Full Video)"

Dear Frds, Hope all are doing well!! First of all i would like to say Wish you happy Diwali to all! Today morning i saw one of the video. Which is really unstoppable. Plz when u all free watch this video. it will help lot of our career and day to day life. Plz click this link for video http://www.youtube.com/watch?v=AV37vcRBPhs Ending all inhibitions that stop you, this session by Sandeep Maheshwari is a mirror that puts forth your true potential, making you UNSTOPPABLE in true sense of the word. This unique storytelling session throws light on the biggest obstacles of life and how to break free through them. Sharing insightful learnings, different ups and downs, the session delves deep into the 'Law Of Attraction' and how is it being practiced as a mere superstition instead of a powerful tool of being an achiever. WR, Chiranjeet Bhatt Hyderabad, A.P

"Everything you know about teamwork is wrong"

1. Teams aren't always a good idea [T]eams are not automatically better than the sum of their parts. They are often worse. This is termed "collaborative inhibition" or "process loss." … People have a bias to romanticize the benefits of team productivity, while underestimating just how much time is wasted by teams. According to University of North Carolina professor Bradley Staats, productivity per person can drop 40 percent even on a small team… In studies of thousands of companies that have implemented teamwork, there's no firm evidence that, on average, they make any more money, or are even more productive, after instituting a team-based structure. [Top Dog: The Science of Winning and Losing] 2. 90 percent of teams' success is determined before they start work [W]hat Hackman calls the "60/30/10 Rule." Having studied teams in many settings, from airplane cockpits to symphony orchestras, Hackman believes that 60 percent of a team's fate has been written before the team members even meet. Its destiny is decided by a combination of the team leader's efficacy, whether the team's goal is challenging yet attainable, and the ability level of the people recruited to the team. 30 percent of a team's fate is sealed with the initial launch of the team — how the teammates meet and, in those initial exchanges, how they split up the responsibilities and tasks before them. They need to agree on common codes of conduct and shared expectations. All told, 90 percent of a team's fate has been decided before the team ever begins its real work. [Top Dog: The Science of Winning and Losing] 3. Defining roles may be the most important thing a team does Clarifying who is going to do what — identifying distinct roles — is one of the most proven ways to increase the quality of teamwork. The egalitarian notion that team members should be equal in status and interchangeable in their roles is erroneous. Teams work best when participants know their roles, but not every role needs to be equal. Dr. Eduardo Salas at the University of Central Florida is one of the most widely cited scholars studying team efficiency. He has devoted his life to understanding the vast sea of team-building and team-training processes — analyzing teams used in the military, law enforcement, NASA and numerous corporate settings. The only strategies that consistently deliver results are those that focus on role clarification: who's going to do what when the pressure gets intense. [Top Dog: The Science of Winning and Losing] 4. Everyone does not need to be a "team player" One fallacy about teams is that, to be successful, everyone must be friends. The research says it's the other way around: Team performance drives the quality of relationships… There is an argument to be made that not everyone on a team should be a classic "team player." In a study of 78 European and American orchestras, Harvard's Hackman arrived at a counterintuitive conclusion: The better an orchestra sounded, the more likely there was rivalry, quarreling and discord behind the scenes. The only times they were in harmony was onstage. [Top Dog: The Science of Winning and Losing] 5. Yes, you should treat stars differently Doesn't giving stars special treatment undermine the motivation of the rest of the team? Researchers have looked at the pay of NBA stars, compared with that of their lesser-famous teammates. On average, if certain teammates are getting what is perceived to be an unjustified windfall, that hurts performance: Team members won't work as hard to grab what they see as the short end of the stick. But as long the star treatment is warranted, it doesn't hurt performance… Stars aren't the same. Stars face elevated levels of scrutiny: The expectations for their performances are much higher.