Partnership Details

Northern Arc Capital Limited has entered into an MoU with YES BANK Limited dated June 15, 2026, with the following comprehensive scope:

  • Strategic alliance to leverage Northern Arc's network of 368 Originator Partners (financial institutions) to facilitate substantial credit deployment for YES BANK through its Placements Business
  • Integration of technology platforms across both organizations
  • Northern Arc's proprietary platforms including nPOS, NIMBUS, and NuScore will be integrated with YES BANK's digital lending architecture to enable seamless loan onboarding
  • YES BANK will distribute investment products from Northern Arc Capital's wealth and bonds businesses
  • Northern Arc Investment Managers (NAIM), a wholly owned subsidiary of NACL, will offer Alternative Investment Funds (AIFs) to retail, affluent, and institutional investors
  • Altifi, digital bonds platform of Northern Arc Securities Private Limited (wholly owned subsidiary of NACL) will be integrated with YES BANK's wealth ecosystem to provide seamless access to fixed-income investment products

Financial Considerations

The agreement involves no monetary consideration (Nil).

Related Party Status

YES BANK Limited is not a related party of Northern Arc Capital Limited.

Entity Size Comparison (Audited Consolidated Financials for year ending March 31, 2026)

Northern Arc Capital Limited:

  • Total Income: ₹2,70,033.37 lakhs
  • Profit after Tax: ₹40,357.62 lakhs
  • Net Worth: ₹3,90,100.65 lakhs

YES BANK Limited:

  • Total Income: ₹3,692,817.00 lakhs
  • Profit after Tax: ₹347,559.00 lakhs
  • Net Worth: ₹5,106,201.00 lakhs

Rationale and Expected Benefits

The strategic partnership creates a comprehensive ecosystem spanning credit, capital markets, technology, wealth management, financial inclusion, and sustainable finance.

For Northern Arc:

  • Provides access to a large and diversified banking partner capable of participating in debt raises, securitization transactions, and risk-sharing structures
  • Enhances funding capacity for its originator ecosystem
  • Accelerates scale across its credit platform
  • Strengthens technology-led proposition through integration with YES BANK's distribution channels
  • Expands customer reach and creates additional fee-based revenue streams

For YES BANK:

  • Provides access to pipeline of priority sector, MSME, rural, and emerging market credit opportunities
  • Enables portfolio diversification and accelerated asset growth
  • Provides access to Northern Arc's proprietary technology platforms, banking correspondent network, and extensive ecosystem of originators and NBFCs
  • Supports digital transformation, financial inclusion, rural penetration, liability franchise expansion, and sustainable finance objectives

Operational Details

YES BANK is the sixth-largest private sector bank in India with:

  • 1,583 branches and BCBOs
  • Over 1,350 ATMs
  • Strong franchise in digital and transaction banking
  • Processes one out of every three digital transactions in India

Northern Arc Capital operates:

  • 432 branches nationwide
  • 57 digital partnerships
  • Manages assets aggregating ₹19,686 crore (lending balance sheet of ₹16,594 crore + AUM of ₹3,092 crore)
  • Has facilitated credit placements of ₹1.3 trillion to external investors
  • Has impacted about 140 million lives through approximately ₹2.5 trillion financing to date

Management Commentary

Ashish Mehrotra, MD & CEO, Northern Arc Capital: "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."

Dr. Rajan Pental, Executive Director, YES BANK: "This partnership aligns with our strategy to build technology-enabled credit infrastructure that can serve India's diverse financial needs at scale and contribute towards the Viksit Bharat vision for 2047."