Equitas Small Finance Bank on Thursday said that its MD and CEO PN Vasudevan has resigned and the Board has taken note of his resignation.
Reports suggest that earlier this year, RBI questioned Equitas’ board members on this relationship when extending Vasudevan’s tenure as MD.
He has spent 20 years at Cholamandalam, had a brief stint at DCB Bank, and then 20 years now at Equitas.
This was partially aided by reversal in provisions leading to total provisions reducing 44 per cent y-o-y.
The shares of Equitas SFB closed the day at ₹52.11, down 20 per cent on the NSE.
Equitas Small Finance Bank on Thursday said that its MD and CEO PN Vasudevan has resigned and the Board has taken note of his resignation.
Vasudevan, in a resignation letter, said he is stepping down to remove an “overhang” on the stock, amid “perceptions of conflict of interest” since his daughter is a co-promoter in an NBFC licensed by the Reserve Bank of India (RBI).
He maintained that there is no real conflict, since the bank has had no dealings with that NBFC apart from one short-term deposit that was repaid, and that the relationship was disclosed to the Board and RBI.
“My being the MD of a bank and my daughter being the co-promoter of an NBFC are within the regulatory framework of the Banking Regulations Act,” he said.
Conflict of interest
“In my investor meetings over the past three years, I have been repeatedly asked about the perceived conflict of interest... Inspite of my explaining the above to investors, the perception of conflict continues to persist... Sometimes perceptions are stronger than reality,” he said.
This, he noted, had led to an overhang on the SFB’s stock.
When asked about his decision to resign despite disclosures and the regulator approving his reappointment in July 2026, Vasudevan told businessline that “the regulator is not in the picture at all” and directed us to his detailed letter. He also said he will support the transition to the new executive.
The issue relates to Vasudevan’s daughter co-founding Unico Housing Finance even as the former was MD and CEO of Equitas.
Reports suggest that earlier this year, RBI questioned Equitas’ board members on this relationship when extending Vasudevan’s tenure as MD.
Leading transition
Vasudevan has been instrumental in the journey of Equitas since its inception as a microfinance institution in 2007 and also headed its transition into a small finance bank in 2016.
Earlier in 2022, he planned to step down to pursue philanthropic activities but withdrew the resignation after the board asked him to continue.
He has spent 20 years at Cholamandalam, had a brief stint at DCB Bank, and then 20 years now at Equitas.
In his letter, Vasudevan also said that the bank has laid out a five-year plan through to March 2031, projecting a CAGR of 20 per cent plus in advances and deposits, reaching around ₹1.2 lakh crore in advances and deposits.
“Our last five-year CAGR in advances is about 26 per cent and deposits is about 27 per cent... I am sure the bank will not just deliver the five-year vision but exceed it too,” he said.
Vasudevan’s resignation comes at a time when Equitas SFB reported its highest quarterly net profit of ₹218 crore in Q2FY27, almost 9x growth y-o-y.
This was partially aided by reversal in provisions leading to total provisions reducing 44 per cent y-o-y. Operating profit before provisions stood at ₹402 crore, up 66 per cent y-o-y.
Gross advances at ₹50,669 crore grew by 30 per cent y-o-y, supported by disbursements across business verticals. Total deposits grew by 19 per cent y-o-y and stood at ₹52,483 crore.
The bank mobilised $ 110 million of FCNR(B) deposits under the RBI FCNR(B) scheme window, taking the overall FCNR(B) deposit book to $138 million as of Q2FY27.
The shares of Equitas SFB closed the day at ₹52.11, down 20 per cent on the NSE.
Published on October 29, 2026
