Overview
- Equitas managing director and chief executive P.N. Vasudevan submitted his resignation on Thursday and has agreed to remain in office until a successor takes charge.
- The board asked its Nomination and Remuneration Committee to evaluate internal and external candidates and any appointment will be subject to Reserve Bank of India and other regulatory approvals.
- Vasudevan said he stepped down to lift an investor 'overhang' tied to his daughter's co‑promoted NBFC and maintained there was no ongoing business between the two firms except a short‑term deposit repaid about two and a half years ago.
- Investors pushed the bank's shares down roughly 20% after the announcement even though Equitas reported its highest quarterly profit of Rs 218 crore and total business exceeding Rs 1 lakh crore for the September quarter.
- Vasudevan founded Equitas as an MFI in 2007 and led its conversion to a small finance bank in 2016, and the resignation highlights how governance perceptions can quickly outweigh strong operating results and shape the pace of a regulated leadership transition.