Northern Arc’s Q1 FY25 PBT fell 15.46% YoY, despite growth in AUM, NII, and fee-based income momentum.

• Lending AUM rose 12% YoY to Rs 13,351 crore; fee income grew 24% YoY, showing strong business diversification.
• Credit cost doubled to Rs 102 crore; gross NPA at 1.13%, net NPA at 0.56%, showing stable asset quality.
• CEO notes cautious optimism with improving credit cycle, rising consumption, and rural finance asset quality stabilizing at March 2024 levels.