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.
About YES BANK:
YES BANK is one of the leading new generation private sector banks in India, headquartered in Mumbai. The Bank offers a wide range of banking services such as Corporate & Institutional Banking, Retail Banking, MSME, Transaction Banking and Treasury. The Bank has over 1300 branches, 200+ Business Correspondent Banking Outlets (BCBOs) and more than 1350 ATMs (including CRMs and BNAs) spanning across 300 districts of India. YES BANK operates an International Banking Unit (IBU) at GIFT City and also has a Representative Office in Abu Dhabi, strengthening its cross-border capabilities.
YES Securities, a subsidiary of the Bank provides a wide range of broking and investment products to Retail, HNI, and Institutional clients. YES Foundation, the CSR arm of YES BANK drives social impact agenda across areas such as livelihoods, education, skilling, sustainability and community development, reinforcing its commitment to responsible and inclusive banking.
For more information, please visit the Bank’s website at https://www.yes.bank.in/
About Northern Arc:
Northern Arc Capital Limited (NACL) is a diversified financial services platform focused on expanding the flow of credit to individuals and businesses across India. The Company operates a differentiated credit model that combines Direct-to-Customer (D2C) lending with a Credit Solutions for Origination Partners.
Under its D2C lending business, NACL lends directly from its balance sheet to end customers across the MSME, consumer, and rural segments through a nationwide network of 432 branches and 57 digital partnerships. Complementing this, the Credit Solutions business enables 368 Origination Partners to access capital through Northern Arc’s fund management platform, placements from external investors, and the Company’s own balance sheet. Together, this integrated approach has facilitated financing of approximately INR 2.5 trillion to date, impacting about 140 million lives.
As a platform, NACL manages assets aggregating INR 19,686 crore, comprising a lending balance sheet of INR 16,594 crore and assets under management of INR 3,092 crore within its fund business. In addition, the Company has facilitated credit placements of INR 1.3 trillion to external investors. The platform is powered by technology,
data-driven underwriting, and deep sectoral expertise, positioning Northern Arc as a distinctive and scalable credit solutions franchise within the financial services ecosystem.
Northern Arc is backed by leading global investors including LeapFrog Investments, Affirma Capital, Eight Roads, the International Finance Corporation (IFC) and SMBC, and is guided by an experienced and highly regarded Board of Directors.
The Northern Arc group comprises Northern Arc Capital Limited which is the holding and operating company; Northern Arc Investment Managers Limited, which houses the fund management business; Northern Arc Securities Private Limited, which operates the online bond platform; Pragati Finserv Private Limited, the rural distribution arm; and Northern Arc Foundation, the Company’s CSR arm.
