- PN Vasudevan resigned as MD and CEO of Equitas Small Finance Bank to pursue personal initiatives
- The board accepted his resignation but requested he stay until a successor is appointed
- Vasudevan cited perceived conflict of interest concerns linked to his daughter's NBFC role
Equitas Small Finance Bank Ltd. 's managing director and chief executive officer PN Vasudevan resigned from his post, with the company's board taking cognizance of Vasudevan's resignation, according to a press release from the company on Thursday. Vasudevan is leaving to pursue "certain personal and social initiatives through which he believes he can contribute further to society", as per the filing.
The firm asked Vasudevan to continue in the role until it has found a suitable successor for the position. The resignation will be effective, once he hands over these responsibilities to his successor.
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According to Vausdevan's resignation letter, his daughter is the co-promoter of a non-banking financial company. He added that he was repeatedly asked about the percieved conflict of interest.
"There is no conflict of interest, since there is no transaction at all between our bank and the said NBFC", the letter said.
It did acknowledge that there was one transaction with regards to a short term deposit going back 2.5 years, which was repaid on maturity.
Inspite of explaining this to investors, the perception of conflict continues to persist, the letter said.
Vasuedevan remarked that investors told him that that this ‘overhang' is causing stock to underperform.
"It is important that we remove the ‘overhang' arising out of the perception issue. Accordingly, I would like to step down from the bank.With this ‘overhang' removed, stock should reflect the financial strength of the bank," the leter stated.
Equitas Small Finance Bank Q3 Results
Equitas Small Finance Bank Ltd.'s net profit for the quarter ending Sept. 30, increased multifold to Rs 218 crore from Rs 24 crore in the year-ago period, according to an exchange filing from the company on Thursday. The net interest income was up 33% to Rs 1,026 crore from the preceding fiscal's Rs 773 crore. The company's operating profit was at Rs 402 crore, from the previous financial year's Rs 241 crore.
The gross non-performing assets contracted to Rs 2.29% from 2.42% on a quarter-on-quarter (QoQ) basis. The net non-performing assets contracted to 0.70% fro 0.71 QoQ. The provisions were at Rs 115 crore, from the previous quarter's Rs 161 crore. The provisions in the previous fiscal were Rs 207 crore.
ALSO READ: Equitas SFB Q2 Results: Profit Jumps Multifold, Revenue Rises
Equitas SFB Q2 Results Highlights (YoY)
- Net Profit At Rs 218 crore Vs Rs 24 crore
- NII Up 32.7% At Rs 1,026 crore Vs Rs 773 crore
- Operating Profit At Rs 402 crore Vs Rs 241 crore
- Gross NPA At 2.29% Vs 2.42% QoQ
- Net NPA At 0.70% Vs 0.71% QoQ
- Provisions At Rs 115 crore Vs Rs 161 crore QoQ; Rs 207 crore YoY
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