Analysts agree that despite the volatility in global markets the economy is wellpoised for growth. Emerging economies are expected to lead that growth and India hasemerged as the fastest growing major economy in the world as per the Central StatisticsOrganisation and International Monetary Fund. Strong government reforms and RBI'ssustained focus on reducing inflation combined with benign global commodity pricesprovided the impetus needed to improve India's economic fundamentals in 2016.
Against this backdrop Chola stayed focused on creating value for its stakeholders.Value that is transformational and long lasting for investors customers employees andthe community at large.
I am pleased to tell you that we had a good finish to FY 16. The PAT for the year is Rs568 crores a growth of 31%. Our assets grew by 17% and disbursements grew by 28%. OurTotal AUM for the year are Rs 32056 crores with a net NPA of 2.1% and (PAT) ROTA of 2.3%.Net Income Margin (NIM) is at 8.7% for the year driven by an increase in interest incomea reduction in cost of funds and a substantial increase in fee and other income. Ouroperating income has grown at a CAGR of 18% over FY 13 to FY 16.
We have accelerated our provisioning to 4 months overdue and standard assetsprovisioning to 0.40% which is ahead of the RBI mandate.
We have also created a one-time provision of Rs 54 crores as a standard assetsprovision as a prudent move to cover the revised provisioning norms that should becomplied by March 2018.
The vehicle finance business disbursed Rs 12383 crores during the year registering agrowth of 32% on the back of a revival in the commercial vehicle market coupled with ourfocused approach on strengthening dealership networks. The PBT grew by 60% to Rs 555crores. Our disbursements in heavy commercial vehicles were in line with market. Wecontinued to focus on improving our book quality and our Gross Non Performing Assets(GNPA) came down considerably. We will stay resolute on maintaining best in class assetquality lower net credit losses and aim for consistent reduction in GNPA.
Home Equity disbursement for the year was Rs 3476 crores registering a growth of 14%and Business assets under management was at Rs 8851 crores. We continued to expandbranches and added 14 more for a total of 92.
It has allowed us to understand our customers better and give value through informedpersonalised service.
Our Home Loans business has been growing steadily and operates from 45 branchescurrently. The Corporate Finance division continued its focus on MSME loans and ended theyear with AUM of Rs 423 crores.
The Rural Financing product was launched during FY 15 at 40 Mana Gromor Centresoperated by Coromandel International Limited to finance the procurement needs of thefarming community. This division catered to the needs of about 4800 customers during FY16.
Our subsidiaries put together made a PBT of Rs 8.23 crores. Our consolidated PAT for FY16 is Rs 575 crores contributing to an overall growth of 29%.
During the course of the year we made an investment of Rs 8 crores for a majoritystake in White Data Systems India Pvt. Ltd. (WDSI) a freight aggregator in order tosupplement the truck lending business and create value for the institution. WDSI offers aholistic range of services with tangible benefits to truck operators booking agentsbrokers and load providers through its i-Load platform. The platform will provide truckoperators new and scalable business opportunities that will lead to increased truck assetutilisation sustained growth and better economic opportunities.
CRISIL has upgraded its rating on our long term debt instruments from AA- / Positive toAA / Stable.
I would like to thank all our stakeholders for their faith in Chola and for theirconstant support.
We will continue to stay focused on creating value for both external and internalstakeholders.
Do share your ideas and feedback with me firstname.lastname@example.org us in our mission of creating value for our stakeholders.