As far as the economic strength of India is concerned the year under review has beenquite promising. Indias GDP grew by 7.6% in the current financial year. As on April2016 the CPI inflation rate stood at 5.39% which has justifiably complemented thenations economic growth as well as reduced bank interest rates. In the recentbudget the Indian government has planned to maintain fiscal deficit at 3.9% of GDP forthe FY 16-17.
Housing Finance Companies (HFCs) have been successful at escalating their market sharewhile narrowing the difference with banks assisted by low NPAs and competitive lendingrates. As per the vision of Housing for All by 2022 the government has beenaiming to supply affordable homes to majority of the population. In addition to that theReal Estate Regulatory Act that has been passed by both the houses at the end of thisfinancial year has also brought forward the scope for development of the sector. In theupcoming years certain long term goals and initiatives of the government are likely toraise demand for houses thereby eventually raising the demand for home loans.
When compared against such evolving scenarios as the backdrop the FY 15-16 has beenreasonably good for us. We expanded our presence to wider areas and in the process alsoachieved some significant milestones. We stuck to our long-standing philosophy ofempowering lives of people and promoting ownership of homes by following the strategy toexpand our business as well as strengthen our liquidity. While we grew our disbursementsat 17% y-o-y the operating profit growth was a benchmark as it surged 80% to H273.26Crore in the current year compared to H151.70 Crore in FY 14-15. This was backed by ourfundamental strengths in business - prudent lending vigilant credit mechanism andeffective collection system.
While the operating profit claimed the position of our biggest highlight of the yearwe also witnessed growth on various other financial parameters. Our sanctions grew y-o-yby 20% to H4418 Crore; outstanding under non-housing loans has increased by 39%over last year and we maintained our Capital Adequacy Ratio (CAR) at 20.69% (well abovethe industry benchmark). Striking the right balance across all financial parameters hashelped us strengthen our investors confidence in the company. Incidentally our shareprice increased to H1154 in March 2016 from H607 during the same period last year.
These positive financial numbers were also a result of high operational excellence. Wecontinued our branch expansions taking the count of our total branches to 110 as on March31 2016. Of these a total of 76% branches are in South India and 17% of branches are inBengaluru city. Our target customer segment continues to be salaried professionals whoaspire to have their own homes. Urbanisation continues its upward trajectory in thisregion and with our easy finance mechanisms in place we believe we are perfectlystriding towards our ambitious Vision 2020 goals.
Along with growing our disbursements we also managed to grow our customer base withdiverse financing requirements. We reduced our average ticket size to H17.36 Lakh ofwhich 95% of the loans were granted in the affordable housing segment. Our stringentcredit mechanism has helped us maintain Non-Performing Assets (NPA) for the FY 15-16 at0.19% - which is well below the industry average of 0.70%. This in turn helped usstrengthen our margin levels as we increased our Return on Equity (ROE) Return on Assets(ROA) and Net Interest Margin (NIM) to 17.89% 1.69% and 3.24% respectively.
Margins were improved as we continued to diversify our borrowings thereby increasingthe proportion of our borrowings through money market instruments such as CommercialPapers (CP) & Non-Convertible Debentures (NCD). This has substantially reduced ourcost of borrowing which stood at 8.75% by the end of the March 2016 from 8.99% as onDecember 2015. We further expect to scale down the borrowing cost and strengthen themargin levels as we progress. This will be backed by the combination of strict costmanagement and cost reduction programmes started by us in the current financial yearwhich resulted in high profit and margin levels.
As we continue to make progress towards our Vision 2020 targets we havecome to realise that the current market conditions are inevitably concentrating on therisks that exist within the Indian economy. It is however important to recognise yetagain the unbeatable resilience that our business model and balance sheet strengthprovide which will undoubtedly help us maintain sustainability in our performance.
We stride towards the next fiscal with the clear strategy of creating long-term valuebacked by our core competencies. Our competent employee force and management team went theextra mile consistently throughout the previous fiscal to meet the demands placed onthem by our customers regulators and investors. I would like to put on record theBoards appreciation for that commitment and sincerity and our gratitude for all thatthey have achieved.
In the end I wish all the best to Mr. Hota who has taken over the charge from mew.e.f. May 19 2016 for pursuing quality growth in future.