Equitas Bank shares crash as CEO quits over conflict concerns
What's the story
Equitas Small Finance Bank's shares plummeted by nearly 16% on Thursday, following the resignation of its Managing Director and CEO, P N Vasudevan. The decision comes amid concerns over a potential conflict of interest. The bank's stock was trading at ₹54.60 per share on the National Stock Exchange (NSE), down by 16.16%, around 3:20pm today.
Resignation details
Vasudevan stepped down with effect from October 29, 2026
In an exchange filing, Equitas SFB announced that it had received a letter from Vasudevan expressing his intention to resign.
He said he wants to pursue personal and social initiatives through which he believes he can contribute further to society.
The bank said Vasudevan had stepped down with effect from October 29, 2026.
Until a successor is appointed, Vasudevan will continue in his role as MD & CEO of the bank.
Conflict concerns
Disclosure to board, RBI on potential conflict of interest
Vasudevan revealed in his letter that his daughter is the co-promoter of an NBFC licensed by the Reserve Bank of India (RBI) in 2023.
He said this matter was disclosed to both Equitas SFB's board and RBI through various declarations.
Despite clarifying that there was one short-term deposit about 21/2 years back, which was duly repaid on maturity, and no other transactions, including any loans by the bank to the NBFC, concerns persisted among investors over the last three years.
Resignation rationale
'Perceptions are stronger than reality'
Vasudevan said he decided to resign in order to eliminate concerns over the perceived conflict of interest.
He expressed confidence that once this issue was resolved, the bank's stock would reflect its financial strength, benefiting all stakeholders, including employees.
"Sometimes perceptions are stronger than reality," he wrote in his letter.
Regulatory scrutiny
RBI probes Equitas SFB's ties with Unico Housing Finance
Earlier, Moneycontrol had reported that the RBI had contacted Equitas SFB's top management to understand the nature of its relationship with Unico Housing Finance, an NBFC floated by Vasudevan's daughter.
Unico was incorporated in March 2023 and has raised around ₹1,000 crore in FY26 from two home-grown private equity firms.