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Equitas SFB CEO Quits Amid Conflict of Interest Allegations, Stock Crates 20%
The board asked PN Vasudevan to stay until a successor is named after his resignation triggered a 20% intraday share drop.
- On Thursday, Equitas Small Finance Bank Managing Director and CEO PN Vasudevan resigned, citing an "overhang" of a "perception issue" concerning a non-banking finance company run by his daughter.
- Vasudevan's daughter, Varshini Vasudevan Pathangi, co-promoted Chennai-based Unico Housing Finance in 2023 with Rs 240 crore paid-up capital; Vasudevan claimed her role complies with the Banking Regulations Act and was disclosed to the RBI.
- Sources said the sudden resignation followed a series of Reserve Bank queries regarding the conflict of interest; Equitas SFB shares plunged 20% on Thursday before closing down 12.39% at Rs 56.99.
- The board requested Vasudevan continue discharging his duties as Managing Director and CEO until a successor is identified. The Nomination and Remuneration Committee will now search for suitable internal and external candidates.
- With a market capitalisation of Rs 6,500 crore, Equitas SFB faces leadership transition as Unico's senior management includes former Cholamandalam and Equitas employees, including chairman N Rangachary, who previously led Equitas SFB.
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Crash! Why Equitas Small Finance Bank stock is so much down today? Share price plunges 12% despite strong Q2
Equitas Small Finance Bank shares fell nearly 12% for a second day, despite quarterly net profit rising to ₹218.03 crore. Investors reacted to CEO PN Vasudevan’s resignation amid conflict-of-interest concerns
·New Delhi, India
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Shares of Equitas SFB saw a significant decline on Thursday, hitting a 20% lower circuit at the close of trading after its CEO resigned from the company.
Coverage Details
Total News Sources13
Leaning Left2Leaning Right4Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 25%
C 25%
R 50%
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