PRESS RELEASE
South Indian Bank and Northern Arc Capital Forge an Alliance for Joint Lending
Initiatives Leveraging nPOS
Mumbai, 8 May 2024: South Indian Bank has entered into an alliance with Northern Arc Capital. This
association has been formalized through the signing of a Memorandum of Understanding (MOU)
underscoring the commitment of both institutions to a mutually beneficial partnership. The partnership is
aimed at exploring and maximizing business opportunities through combined efforts in the areas of loan
origination, underwriting, disbursement, collection, and reconciliation processes. The alliance will focus on
co-lending and partnership lending activities, as well as facilitate seamless loan transfers between banks
and originators.
The partnership signifies a shared commitment to harnessing synergies, expertise, and resources to
enhance the efficiency and effectiveness of lending operations. By joining forces, South Indian Bank and
Northern Arc Capital aims to capitalize on emerging market trends, diversify their portfolios, and provide
innovative financial solutions to a broader customer base. The partnership will enable South Indian Bank to
leverage nPOS, Northern Arc’s proprietary technology platform for co-origination, co-lending and pool
buyouts, and to seamlessly connect with multiple originators for loan origination, underwriting,
disbursement, and reconciliation abilities.
Mr. P R Seshadri, MD and CEO, South Indian Bank said, "This alliance with Northern Arc Capital serves as
a compelling testament to our unwavering commitment to innovation and sustained growth. As we unite
our respective strengths, our collective aim is to forge a formidable presence in the financial sector. This
collaboration is poised not only to drive enhanced value for our customers but also to create tangible
benefits for our stakeholders. By leveraging the synergies inherent in this alliance, we look forward to
pioneering innovative solutions and setting new benchmarks within the dynamic landscape of the financial
industry."
Mr. Ashish Mehrotra, MD & CEO, Northern Arc Capital Ltd, shared his perspective on the partnership,
stating, "We are delighted to partner with South Indian Bank in advancing their digital initiatives. nPOS is
tailored to cover the full gamut of retail asset classes. With the ability to handle large number of loans,
personalized offerings, and an intuitive user interface, nPOS aims to simplify the interactions amongst
borrowers, originators, and lenders. The extensive reach of South Indian Bank coupled with Northern Arc’s
experience in structured finance aims to create a powerful synergy. By joining forces, South Indian Bank
and Northern Arc Capital aims to capitalize on emerging market trends, diversify their portfolios, and
provide innovative financial solutions to a broader customer base.”
The other noteworthy attendees at the MOU signing ceremony included Mr. Ramesh U, DGM & Zonal Sales
Head – Corporate, South Indian Bank, Mr Prashant George Tharakan, AGM & Head – Investor Relations,
South Indian Bank, Mr. Prajin Varghese, AGM & Regional Head – Mumbai, South Indian Bank, Mr. Amit
Mandhanya, EVP, Direct Origination, Northern Arc, Ms. Sandhya Dhawan, EVP- Markets, Northern Arc, Ms.
Geetu Sehgal, Chief of Staff, Northern Arc, Mr. Sumant Paul, Sr. VP - Markets, Northern Arc reflecting the
collective commitment to this association. The partnership between South Indian Bank and Northern Arc
Capital is expected to foster an ecosystem that encourages innovation and facilitates the smooth flow of
credit across various sectors. Both institutions are confident that this alliance will not only strengthen their
market positions but also contribute significantly to the growth of the financial industry.
About South Indian Bank:
South Indian Bank is a Kerala-based private sector bank with a nationwide presence. The Bank’s shares are
listed on The Stock Exchange Mumbai (BSE) and The National Stock Exchange of India Ltd., Mumbai (NSE).
South Indian Bank has 955 branches, 3 Ultra Small Branches, 3 Satellite Branches, 1188 ATMs, and 133
CRMs across India and a representative office in Dubai, UAE. For more information, please log on to
www.southindianbank.com
About Northern Arc Capital:
Northern Arc is one of the leading player amongst India’s diversified NBFCs in terms of AUM as of March
31, 2023 (Source: Report titled “Analysis of NBFC sector and select asset classes” dated December 2023)
dedicated to empowering the lives of underserved individuals and businesses. Powered by technology and
data, Northern Arc offers a suite of solutions including lending, placements and fund management in
focused sectors like MSME Financing, MFI, Consumer Financing, Vehicle Financing, Affordable Housing
Financing and Agricultural Finance. Since 2009, Northern Arc has facilitated financing of over INR 1.50
trillion that has impacted over 80.59 million lives, spread across 682 districts in 28 states and 7 Union
Territories in India. Northern Arc handles an AUM of INR 100,811.11 million. The firm is backed by equity
investors like Sumitomo Mitsui Banking Corporation, LeapFrog, 360 ONE (formerly known as IIFL), Accion,
Augusta Investments (known as Affirma Capital), Dvara Trust and Eight Roads (proprietary arm of Fidelity).
(Disclaimer: All the data stated in the boiler plate is as of Sept 30, 2023.)
For Media Queries:
Steve Stephen Varghese Ambika TM
Chief Manager – Corporate Communication Manager – Corporate Communication
South Indian Bank South Indian Bank
Email:
[email protected] /
[email protected] Email:
[email protected] /
[email protected] Mob: +91 7034324506 Mob: + 91 9920676627
Banali Banerjee Nitin Seth
DVP – Corporate Communication AVP – Corporate Communication
Northern Arc Capital Northern Arc Capital
Email:
[email protected] Email:
[email protected] Mob: +91 9769610385 Mob: +91 9820852857
“Northern Arc Capital Limited is proposing, subject to receipt of requisite approvals, market conditions and
other considerations, to make an initial public offering of its equity shares and has filed a draft red herring
prospectus (“DRHP”) and an addendum to the DRHP (“Addendum”) with the Securities and Exchange Board
of India (“SEBI”). The DRHP and the Addendum are available on the website of the SEBI at www.sebi.gov.in,
the website of the Company at www.northernarc.com, the website of the National Stock Exchange of India
Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com and the respective
websites of the Lead Managers at www.icicisecurities.com,www.axiscapital.co.in/equity-capital-
markets/offer-document/ and www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm.
Investors should note that investment in equity shares involves a high degree of risk. For details, potential
investors should refer to the red herring prospectus, once available, which may be filed with the Registrar
of Companies in the future, including the section titled “Risk Factors”. Potential investors should not rely on
the DRHP and the Addendum filed with the SEBI in making any investment decision.”
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as
amended (the “U.S. Securities Act”), and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. Persons as defined in Regulation S under the U.S. Securities Act (“U.S.
Persons”) except pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act and applicable U.S. state securities laws. The Company has not
registered and does not intend to register under the U.S. Investment Company Act of 1940, as amended
(the “U.S. Investment Company Act”) in reliance upon section 3(c)(7) of the U.S. Investment Company Act
and investors will not be entitled to the benefits of the U.S. Investment Company Act. Accordingly, the
Equity Shares are only being offered and sold (i) to persons within the United States or to or for the account
or benefit of, U.S. Persons (as defined in Regulation S under the U.S. Securities Act), who are both (a)
“qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act (“Rule 144A”) in one
or more transactions exempt from the registration requirements of the U.S. Securities Act; and (b)
“qualified purchasers” (as defined in Section 2(a)(51) of the U.S. Investment Company Act) in reliance upon
section 3(c)(7) of the U.S. Investment Company Act, and (ii) outside the United States, to investors that are
not U.S. Persons nor persons acquiring for the account or benefit of U.S. Persons in “offshore transactions”
in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where
those offers and sales occur. There will be no public offering in the United States.
