Strong Quarter for Northern Arc Capital

In an impressive financial performance, Northern Arc Capital recently reported a significant jump in their net profit, soaring by 43% to reach ₹93 crore for the June quarter. Excitingly, their net interest income also saw a remarkable rise of 40% year-on-year, climbing to ₹272 crore!

Robust Growth in Lending Portfolio

The company’s lending portfolio showcased a robust growth, increasing by 32% and reaching an impressive ₹11,869 crore by the end of June. Their assets under management (AUM) stood at ₹2,770 crore, signaling a healthy upward trend. During this quarter, Northern Arc Capital disbursed a whopping ₹4,433 crore, marking a staggering growth of 79%. Additionally, their gross transaction volume surged by 38%, hitting ₹7,616 crore.

Customer-Centric Lending Strategy

In alignment with their customer-focused strategy, the share of direct-to-customer loans has also increased significantly, now accounting for 52% as of June 30—up from 45% a year ago.

Managing Credit Costs

The company reported a credit cost of ₹51 crore for the quarter, which is an increase from ₹32 crore recorded in the same quarter last year. However, even with the rising costs, Northern Arc Capital managed to maintain a strong position.

Keeping an Eye on NPAs

On a positive note, the gross Non-Performing Assets (NPA) ratio saw a slight decline, falling to 0.47% by the end of the quarter from 0.49% a year ago. This speaks volumes about the company’s efficient management of credit risk. They also concluded the quarter with a solid capital adequacy ratio of 21.5%.

Clearly, Northern Arc Capital is navigating the financial landscape confidently, with promising growth and strategic initiatives that underline their commitment to expanding their services and enhancing customer experience.