Revenue Growth and CASA Mobilization in the Era of Digital Banking: Evidence from PSBs

Abstract

Public sector banks in India are progressively embracing digital banking services to improve efficiency, increase in income, and CASA mobilisation . This research examines secondary data (2019-2023) derived from RBI reports and bank annual reports, utilizing factors including revenue growth, ROE, CASA deposits, and digital transaction indicators. The study utilizes STATA with panel data methodologies (Fixed and Random Effects models, Hausman test)  and concludes that mobile banking substantially increases revenue growth, UPI transactions enhance CASA mobilization, and a greater share of digital transactions improves ROE. Findings underscore digital banking as a crucial catalyst for financial performance in PSB.