Northern Arc Capital has appointed M/s. R. Subramaniyan and Company LLP as its Joint Statutory Auditors for a period of three years, subject to shareholder approval. The decision was taken by the Board of Directors during a meeting held on July 10, 2026. The appointment is necessitated by the company's asset size exceeding ₹15,000 crore as of March 31, 2026, which mandates joint statutory auditors under Reserve Bank of India guidelines applicable to Non-Banking Financial Companies.

The new auditors will hold office from the conclusion of the ensuing 18th Annual General Meeting until the conclusion of the 21st Annual General Meeting. The existing statutory auditors, M/s. Walker Chandiok & Co LLP, will continue to hold office until the conclusion of the 19th Annual General Meeting. The appointment of M/s. R. Subramaniyan and Company LLP is based on the recommendations of the Audit Committee.

ESOP Allotment

Separately, the Board approved the allotment of 39,000 equity shares to an option grantee who exercised options under the Northern Arc Employee Stock Option Plan, 2016. These shares have a face value of ₹10 each and are fully paid-up. They will rank pari-passu with the existing equity shares of the company. The company will apply for listing and trading approval from BSE Limited and National Stock Exchange of India Limited.

With this allotment, the paid-up equity share capital of Northern Arc Capital has increased. The table below details the change in share capital:

The Board meeting commenced at 05:45 P.M. and concluded at 07:15 P.M. on July 10, 2026.

Northern Arc Capital has entered a strategic partnership with YES BANK Limited to facilitate substantial credit deployment by leveraging a network of 368 originator partners. The collaboration, formalized through a Memorandum of Understanding (MoU) on June 15, 2026, integrates technology platforms to expand digital lending and provide debt investment opportunities. This alliance aims to bridge India's credit gap by combining balance-sheet strength, digital infrastructure, and underwriting expertise to serve underserved segments in line with the Financial Inclusion agenda.

The partnership encompasses several key areas, including the integration of Northern Arc's proprietary platforms—nPOS, NIMBUS, and NuScore—with YES BANK's digital lending architecture. This integration is designed to enable seamless loan onboarding and credit delivery at scale. Additionally, YES BANK will distribute investment products from Northern Arc Capital's wealth and bonds businesses, while Northern Arc Investment Managers will offer Alternative Investment Funds to the bank's retail, affluent, and institutional investors.

Financial Scale and Rationale

The agreement brings together two significant financial entities. As per the audited consolidated financial statements for the year ending March 31, 2026, Northern Arc Capital reported a total income of ₹2,70,033.37 lakh and a net worth of ₹3,90,100.65 lakh. In comparison, YES BANK Limited recorded a total income of ₹3,692,817.00 lakh and a net worth of ₹5,106,201.00 lakh.

The strategic partnership is expected to drive meaningful business growth by creating a comprehensive ecosystem spanning credit, capital markets, and wealth management. For Northern Arc, the arrangement provides access to a large banking partner capable of participating in debt raises and securitization transactions, thereby enhancing funding capacity. For YES BANK, the collaboration offers access to a differentiated pipeline of priority sector and MSME credit opportunities, enabling portfolio diversification and accelerated asset growth.

Technology Integration and Distribution

A key pillar of the partnership is the integration of Altifi, the digital bonds platform of Northern Arc Securities Private Limited, with YES BANK's wealth ecosystem. This will provide seamless access to fixed-income investment products through a transparent and technology-enabled interface. The alliance also aims to accelerate retail lending growth through the co-lending model of Northern Arc's nPOS, supported by data-led underwriting and structured risk-sharing mechanisms.

Ashish Mehrotra, Managing Director and Chief Executive Officer of Northern Arc Capital, stated that the partnership brings together complementary capabilities to build a more efficient financial ecosystem for underserved borrowers. Dr. Rajan Pental, Executive Director of YES BANK, highlighted that the collaboration aligns with the bank's strategy to build technology-enabled credit infrastructure and opens institutional-quality private credit opportunities to a broader client base.