Equitas Small Finance Bank Managing Director and Chief Executive Officer PN Vasudevan said his decision to step down was aimed at removing a long-standing overhang on the lender, adding that there were no regulatory or governance concerns surrounding his resignation.
Speaking exclusively to NDTV Profit, Vasudevan said the bank was performing well across all parameters and was poised for strong growth in the foreseeable future. He believes this is the right time to step aside when the lender is in good health and ensure that the issue does not continue to weigh on its stock.
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“This overhang has been an issue over the last few years and has been impacting the stock. I believe this is the right time to remove that overhang,” he said.
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Vasudevan clarified that there were no regulatory concerns regarding his resignation and that he did not see succession as another overhang for the stock. He added that the bank would ensure a smooth transition and continue to deliver strong performance under its next leadership.
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“There is no governance issue and no regulatory concern with respect to my resignation,” he said, adding that there had been no discussions with stakeholders regarding his decision.
On Thursday, Equitas Small Finance Bank informed stock exchanges that it had received a letter from Vasudevan conveying his intention to step down to pursue personal and social initiatives through which he believes he can contribute further to society.
In his resignation letter, Vasudevan disclosed that his daughter is the co-promoter of an NBFC that received a licence from the Reserve Bank of India in 2023. He said the relationship had been disclosed to the bank's board and the RBI through various declarations.
Addressing concerns around a potential conflict of interest, Vasudevan maintained that there was no such conflict. He said Equitas SFB had no transactions with the NBFC apart from a short-term deposit placed around two-and-a-half years ago, which was repaid on maturity. The bank had also not extended any loans to the NBFC.
Vasudevan added that he had no stake in his daughter's NBFC and that his position as the bank's MD was within the regulatory framework of the Banking Regulation Act.
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