Equitas SFB CEO Resigns Amid Conflict Concerns

Equitas Small Finance Bank’s stock plunged nearly 20% today after Managing Director & CEO P. N. Vasudevan announced his resignation amid investor concerns over a perceived conflict of interest involving his daughter’s NBFC. Despite the leadership shock, the bank reported its highest-ever quarterly profit of ₹218 crore for Q2FY27. 🏦 Key Developments — 29 Oct 2026 CEO Resignation: P. N. Vasudevan stepped down to remove the “perception overhang” of a conflict of interest linked to his daughter’s NBFC, Unico Housing Finance, licensed by RBI in 2023. He will continue until a successor is appointed; the board’s Nomination & Remuneration Committee has begun the search. Vasudevan clarified that no loans or transactions exist between Equitas SFB and the NBFC except a short‑term deposit repaid two years ago. Market Impact: Shares hit the 20% lower circuit at ₹52.11, closing down 12.22% at ₹57.17 (NSE). Market cap loss: ≈ ₹1,500 crore. Heavy volumes — over 6.5 crore shares traded — reflect investor panic. 📊 Q2FY27 Financial Highlights Metric Q2FY27 YoY Change QoQ Change Notes PAT ₹218 crore +803% +19% Record quarterly profit Gross Advances ₹50,000 crore + +30% +6% Crossed milestone Deposits ₹50,000 crore + +19% +7% CASA ratio 26% Net Interest Margin (NIM) 6.69% ↓55 bps QoQ — Slight compression Gross NPA / Net NPA 2.29% / 0.70% ↓13 bps QoQ — Improved asset quality ROA / ROE 1.31% / 13.5% — — Strong profitability Total Business ₹1 lakh crore + — — Surpassed milestone 💬 Board & Regulatory Notes Board Response: Accepted Vasudevan’s resignation; reiterated strategic continuity. RBI Oversight: Appointment of new CEO will require RBI approval. Chairman Re‑appointment: Anil Kumar Sharma re‑appointed as Part‑Time Chairman for 3 years from Apr 2027. Office Shift: Registered office moving to Equitas Towers, Little Mount, Saidapet, Chennai, effective 30 Oct 2026.