The year 2015-16 was another year of determined execution and delivery resulting inimproved all around performance of your Bank. We expanded our branch network launched newdigital initiatives strengthened existing ones forged new partnerships and intensifiedengagement with our customers. Our efforts to make operations more efficient reducecredit risks and focus on capital discipline also bore fruit. We are thus on course tomeet our strategic goals and build a stronger IndusInd Bank in the coming years.
As part of our efforts to provide expanded services to existing and new customers inRural India - the new frontier of growth - we launched a slew of banking products that areconvenient and easy to use and have moved towards tapping this important market throughour physical and digital networks. We are happy to mention that our Micro-Lending businesshas enriched the lives of the rural populace and created livelihoods for them. For usthis is a great news as it inspires us to move ahead in our Financial Inclusion goal. Itis our endeavour to impact lives at all levels of banking.
The last financial year was not easy for the banking sector but it did not deter usfrom posting growth across all key parameters. While Net Profit rose 27 per cent to Rs.2286.45 crore against Rs. 1793.72 crore in FY15 Net Interest Income was up 32 per centto Rs. 4516.57 crore compared to Rs. 3420.28 crore in the previous year. Return onAssets was 1.91 per cent against 1.90 per cent in FY15. In addition total advances anddeposits registered a growth of 29 per cent and 25 per cent respectively.
The Banks healthy profitability is a clear indication that we have run the extradistance to achieve our objectives and cement our place as a consistent player in thebanking industry.
As in previous years expansion continued to be the focal point of our core business inFY16. We opened 199 new branches and 313 ATMs in both urban and rural areas. As of March31 2016 IndusInd Bank had 1000 branches and 1800 ATMs spread across 623 geographicallocations in the country. We are moving towards opening 1200 branches by March 2017.
During the year your Bank unveiled new technological initiatives particularly in theareas of digital capabilities. In this context we formed a strategic partnership withPayU India apart from launching a host of digital services like QuickPay - aninstant money transfer solution Onthego social banking that lets you transfermoney using social media Swiftpay - a one stop solution for easy billpayments and made the IndusMobile app more consumer intuitive.
The Bank also launched IndusInd For Sports its non-banking sportsvertical. Under this venture we launched IndusInd Umang a first-of-its-kindplatform exclusively designed for differently-abled sportspersons.
IndusInd Banks sustained performance in 2015-16 is reflected in the manyaccolades it earned during the year. Your Bank moved up six ranks to 13th place tobecome the Top Riser in BrandZ Top 50 Most Valuable Indian Brands of 2015 as adjudged byWPP and Millward Brown. IndusInd Bank was bestowed with the Best Bank 2015award by Business India.
My message would be incomplete without mentioning the contribution of two of ourBanks most important stakeholders - our customers and our employees. To them Ioffer my sincere gratitude for their unwavering commitment to the Bank.
I would also like to thank the central and regulatory authorities and agencies fortheir support.
Finally my sincere appreciation to my colleagues on the Board for guiding andsupporting the management team in its endeavours.
Yours Sincerely y
Managing Director & CEO