Northern Arc Capital Ltd: India NBFc Theme
- 8sapience
- NBFC , Multibeggars
- 17 Sep, 2024
Data as on : Sept 17, 2024
Northern Arc Capital Ltd
FY24 snapshot: Net Interest Income: Rs 986 cr; +67% YoY PAT: Rs 318 cr; +31% YoY GNPA: 0.5% vs 0.8% YoY Net Interest Margins: 8.4% vs 6.3% YoY
Northern Arc Capital - Founded in 1989, Northern Arc is a mid-sized NBFC. Assets under Management stood at Rs 11,710 cr as of March 2024, having grown at a 29% CAGR in the last 4 years.
But, only half the loan book came from direct lending (aka what most NBFCs do) to retail and MSME customers.
The other half came from lending to ‘intermediaries’ or other mid and small-sized NBFCs, fintechs or housing finance firms.
Risk- its top 20 customers account for 20% of its AUM, which is a potential red flag. It also means slower profitability levels, which is why Northern has pivoted to retail lending in the last four years!
