Equitas Small Finance Bank's outgoing Managing Director and Chief Executive Officer PN Vasudevan on Friday ruled out reconsidering his resignation despite the lender's shares declining 24% over two trading sessions.
As per a report by CNBC-TV18, Vasudevan said his decision followed nearly three years of investor concerns about a perceived conflict of interest involving his daughter's financial services business.
He maintained that stepping down was in the interests of the bank, its employees and shareholders.
Equitas shares declined 13% to Rs 49.74 during late-morning trading on Friday, extending Thursday's 12.2% fall.
The stock lost as much as 32% between Thursday's high and Friday's low, while the two-session decline pushed the bank's market capitalisation below Rs5,700 crore.
Vasudevan's resignation followed concerns surrounding his daughter Varshini Vasudevan Pathangi's involvement in Unico Housing Finance, an unlisted non-banking financial company established in 2023.
He rejected suggestions of an actual conflict, maintaining that the issue involved investor perceptions rather than any wrongdoing.
According to Vasudevan, repeated attempts to address these concerns over the past two to three years had proved unsuccessful.
He had previously announced his resignation in 2022 to pursue philanthropic activities but withdrew it after the board requested his continuation.
This time, however, he made clear that his decision was final.
Addressing concerns following the stock's sharp decline, Vasudevan said Equitas remained financially sound across growth, profitability and asset quality indicators.
He highlighted the bank's highest-ever quarterly profit during the second quarter of financial year 2026-27.
Equitas reported a net profit of Rs218 crore, approximately nine times the corresponding year-earlier figure.
Total income increased 28% to Rs2,358 crore during the quarter.
Vasudevan also said microfinance loans now represented approximately 10-11% of the bank's portfolio.
Most of the remaining loan book comprised secured lending, he added.
Despite the market reaction, Vasudevan maintained that the bank's underlying financial performance remained strong and that his departure would serve stakeholders' long-term interests.
