Equitas Small Finance Bank Share Price Falls 12% As P N Vasudevan Resigns Amid Conflict Of Interest Concerns

Equitas Small Finance Bank Limited announced the resignation of P N Vasudevan as its managing director (MD) and chief executive officer (CEO), effective 29 October 2026. The departure comes amid investor concerns over a perceived conflict of interest involving a finance company co-promoted by his daughter.

The issue centres on the relationship between the bank and Unico Housing Finance. Vasudevan maintained that the relationship did not constitute a conflict but said the continuing concerns had begun to affect the bank’s stock and its efforts to create value for shareholders and employees.

The Equitas Small Finance Bank share price settled at ₹57.17 on 29 October, down 12.22% on the National Stock Exchange (NSE). The stock had touched ₹52.11 during the session, triggering the 20% lower circuit.

What Did P N Vasudevan Say About The Conflict Of Interest Concerns?

In his resignation letter, Vasudevan said his daughter was a co-promoter of a non-banking financial company (NBFC) that received a licence from the Reserve Bank of India (RBI) in 2023. He said the relationship had been disclosed to the bank’s board and the regulator through various declarations.

He also maintained that his position at the bank and his daughter’s role at the finance company were within the regulatory framework of the Banking Regulation Act.

Vasudevan also said the bank’s only transaction with the Unico Housing Finance was a short-term deposit made around two-and-a-half years earlier. The amount was repaid on maturity, and he said the bank had not extended any loans to the company.

According to Vasudevan, investors had raised questions about a possible conflict of interest during meetings over the past three years. Despite his explanations, the perception persisted.

He added that he was stepping down to remove the concerns and expressed confidence that the stock would reflect the bank’s financial strength once the issue was resolved.

Who Will Replace P N Vasudevan At Equitas?

The bank’s board has asked its Nomination and Remuneration Committee to identify suitable internal and external candidates and recommend them for the board’s consideration and approval.

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