MUMBAI, June 26 -- Non-bank financier Northern Arc Capital is targeting a 70-75% share for its direct-to-customer lending business as it makes deeper inroads into rural, small business and retail loans, managing director and chief executive officer Ashish Mehrotra said.

At present, the business accounts for 59% of the total lending assets under management of Rs.16,594 crore as of 31 March, up from 19% in FY21. Its overall assets under management have expanded at a compounded annual growth rate of 26% over the past five years. The change in the mix has led to a 380-basis point improvement in margins to 9.4% in FY26 from 5.6% in FY21.

"As we continue to execute our strategy, the direct-to-customer business will continue to grow at about 3...