National, 16 June 2026: YES BANK & Northern Arc Capital have entered a partnership to  expand access to credit, scale digital lending and provide debt investment opportunities for its customers. This brings together balance-sheet strength, digital infrastructure,  distribution capabilities, underwriting expertise, and technology platforms to expand  formal credit access across underserved segments in India, in line with the Government of  India’s Financial Inclusion agenda towards fulfilling the Viksit Bharat vision of 2047. This  strategic partnership is an outcome of YES BANK’s collaboration with Sumitomo Mitsui  Banking Corporation (SMBC), the largest strategic shareholder in YES BANK and a key  shareholder in Northern Arc Capital. SMBC has helped bring together two complementary  platforms with strong synergies across origination, distribution, technology and balance-sheet  capacity. This marks first of many synergistic collaborations designed to accelerate YES  BANK’s and Northern Arc’s growth journey. 

YES BANK is the sixth-largest private sector bank in India, with a pan-India network of 1,583  branches and BCBOs, and over 1,350 ATMs. The bank offers a wide array of products,  services, and digital solutions tailored for retail, MSME, and corporate clients. With a strong  franchise in digital and transaction banking, it leverages best-in-class technology and a  robust API stack to maintain dominant leadership in digital payments, processing one out  of every three digital transactions in India. 

Northern Arc will leverage its network of 368 Originator Partners (financial institutions) to  facilitate substantial credit deployment for YES BANK through its Placements Business. This  partnership will provide YES BANK access to a diversified pipeline of granular credit  opportunities sourced from Northern Arc’s established ecosystem of lending partners. By  combining Northern Arc’s origination and structuring expertise with YES BANK’s lending  capacity, the initiative is expected to strengthen the flow of formal credit to underserved  borrower segments while supporting scalable and responsible credit expansion. 

Further, this alliance aims to accelerate retail lending growth of both institutions through the  co-lending model of Northern Arc’s nPOS. It will be supported by data-led underwriting,  structured risk-sharing mechanism, and robust portfolio monitoring frameworks. Leveraging  Northern Arc’s diversified origination partner ecosystem across underserved markets,  designed to scale granular lending efficiently while maintaining portfolio quality and  transparency. 

As part of the agreement, Northern Arc Investment Managers (NAIM), a wholly owned  subsidiary of Northern Arc Capital, will offer Alternative Investment Funds (AIFs) & PMS  services to YES BANK’s retail, affluent, and institutional investors. Altifi, Northern Arc  Capital’s online bonds platform, will be integrated with YES BANK’s wealth ecosystem to  provide seamless access to fixed-income investment products through a transparent and  technology-enabled interface.  

A key pillar of the partnership is the integration of technology platforms across both  organizations. Northern Arc’s proprietary platforms such as nPOS, NIMBUS, and NuScore, 

will be integrated with YES BANK’s digital lending architecture for seamless loan onboarding and credit delivery at scale. 

Commenting on the development, Ashish Mehrotra, Managing Director and Chief  Executive Officer, Northern Arc Capital, said, “India’s next phase of financial inclusion will be  driven by institutions that can combine technology, distribution, and risk intelligence at scale. This  partnership brings together complementary capabilities to build a more efficient and accessible financial  ecosystem for underserved borrowers and emerging investors. At Northern Arc, we remain focused on  strengthening the ecosystem that connects capital to opportunities across India’s evolving credit  markets.” 

Dr. Rajan Pental, Executive Director, YES BANK, said, “YES BANK’s partnership with  Northern Arc Capital aligns with our strategy to build technology-enabled credit infrastructure that  can serve India’s diverse financial needs at scale and contribute its part towards the Viksit Bharat vision  for 2047. Northern Arc’s origination platforms and underwriting capabilities, combined with our  strong balance-sheet and digital architecture, create a powerful engine for expanding formal credit  across priority segments. On the investment front, this collaboration opens institutional-quality private  credit and alternative investment opportunities to a broader client base.” 

The collaboration reflects a shared commitment to building scalable financial solutions that  strengthen economic participation and support the aspirations of underserved communities  and emerging investors across the country. 

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Earlier in April 2024, the Company raised Rs. 382 Cr of fresh equity capital from marquee investors, including IFC.

The company announced its Q1FY25 results, showcasing a solid performance across key business metrics, demonstrating resilience and a strong growth momentum.

Performance Review for Q1FY25

• Pre-provision operating profit (PPoP) grew by 43% YoY to Rs. 175 Cr in Q1FY25
• Profit after tax grew by 43% YoY to Rs. 93 Cr in Q1FY25
• Lending Assets Under Management (AUM) grew by 32% YoY to Rs. 11,869 Cr
• Gross NPA ratio was 0.47% on June 30, 2024, compared to 0.49% on June 30, 2023
• Return on Assets was 3.1% for Q1FY25 compared to 2.8% for Q1FY24
• Return on Equity was 14.7% for Q1FY25 compared to 13.3% for Q1FY24
• Total capital adequacy ratio was 21.5% on June 30, 2024.

Summary of Northern Arc’s Performance – Q1FY25:

Ø  Assets

• Lending AUM grew by 32% YoY to Rs. 11,869 Cr on June 30, 2024
• Fund AUM was Rs. 2,770 Cr on June 30, 2024
• Gross Transaction Volume grew by 38% YoY to Rs. 7,616 Cr for Q1FY25

o   Of which, Disbursements grew by 79% YoY to Rs. 4,433 Cr

• Share of Direct to Customer loans has increased to 52% on June 30, 2024, compared to 45% on June 30, 2023 

Ø  Financials

• Net Interest Income grew by 40% YoY to Rs. 272 Cr in Q1FY25
• Fee & Other income grew by 36% YoY to Rs. 25 Cr in Q1FY25
• PPoP grew by 43% YoY to Rs. 175 Cr in Q1FY25
• Credit cost was Rs. 51 Cr for Q1FY25 compared to Rs. 32 Cr for Q1FY24
• Profit after tax grew by 43% YoY to Rs. 93 Cr in Q1FY25
• Return on Assets was 3.1% for Q1FY25 compared to 2.8% for Q1FY24
• Return on Equity was 14.7% for Q1FY25 compared to 13.3% for Q1FY24 

Ø  Asset quality

• Gross NPA ratio was 0.47% on June 30, 2024, compared to 0.49% on June 30, 2023
• Net NPA ratio was 0.12% on June 30, 2024, compared to 0.17% on June 30, 2023
• Provisioning coverage ratio on Stage III assets was 74% on June 30, 2024

 Ø  Capital Adequacy

• Capital adequacy ratio was 21.5% on June 30, 2024.

Commenting on the IPO success and Q1FY25 results, Northern Arc’s MD & CEO Ashish Mehrotra said “We are pleased to report strong results for the first quarter, underpinning our commitment to improving access to retail credit by leveraging our deep domain expertise, risk management, and data-led proprietary technology stacks. Our diversified business model allows us to adapt to changing market conditions while maintaining operational excellence, thus laying the foundation for future growth. We remain focused on enabling a seamless flow of credit to the end customer in a calibrated manner and the process of delivering value to all stakeholders. Further, we are humbled by the overwhelming response to our IPO, which is a testament to our commitment towards providing credit access to underserved households and businesses across the country.“

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