Equitas Small Finance Bank Shares Jump Over 7% As Board Approves Balaji Nuthalapadi As Interim CEO After PN Vasudevan Exit

Equitas Small Finance Bank shares gained over 7% in early trading on Wednesday, 4 November, after the lender's board approved Balaji Nuthalapadi as interim chief executive officer (CEO), following the resignation of PN Vasudevan on 29 October 2026.

The appointment, recommended by the bank's Nomination and Remuneration Committee, is subject to approval from the Reserve Bank of India (RBI). Nuthalapadi currently serves as the bank's Whole-Time Director and Executive Director.

In an exchange filing dated 3 November, the Chennai-based lender said its board had also started the process of identifying a successor to Vasudevan. It will submit its recommendation to the central bank in line with applicable regulations.

Shares Still Down Despite Today’s Recovery

The latest gains come after a sharp sell-off following Vasudevan's departure. On 29 October, the day he resigned, Equitas Small Finance Bank shares hit the 20% lower circuit.

At 10:55 am today, Equitas Small Finance Bank Ltd shares were up 7.27% on the National Stock Exchange (NSE), trading at ₹56.48 apiece.

The stock extended its losses in the following trading session. Despite today’s recovery, the shares remain down around 15% so far in 2026.

N Vasudevan’s Resignation And Board Disagreement

Vasudevan's resignation drew attention after he referred to a possible conflict of interest involving a non-banking finance company (NBFC) co-promoted by his daughter. The NBFC had received its licence from the RBI.

In his resignation letter, Vasudevan said there was no actual conflict of interest. However, he indicated that he could not resolve the board's concerns over the perception of a possible conflict, leading to his decision to step down.

He had also proposed stepping down in 2022 but later decided to continue as the bank's chief executive. The bank thanked Vasudevan for his contribution and confirmed that the search for his successor was underway.

Equitas Small Finance Bank Q2 FY27 Results

The leadership developments overshadowed the lender's September-quarter results, which showed a sharp rise in profitability. Equitas Small Finance Bank reported a net profit of ₹218 crore in Q2 FY27, compared with ₹24 crore in the corresponding quarter last year.

Net interest income (NII) increased 32.6% year-on-year to ₹1,026 crore from ₹774 crore in the year-ago quarter. The bank also reported an improvement in asset quality on a sequential basis.

• Gross non-performing asset (NPA): 2.29% in the September quarter, compared with 2.42% in the June quarter.

• Net NPA: 0.70%, against 0.71% in the previous quarter.

The bank's board will now take forward the process of selecting a permanent CEO, with the appointment requiring regulatory approval.

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