Shares of Equitas Small Finance Bank crashed nearly 12% during Friday’s intraday trading session, extending their losses for the second consecutive session. The sharp sell-off came despite the bank reporting a strong set of Q2 results for the second quarter of FY27.
The Chennai-headquartered small finance bank reported a multifold increase in its net profit to ₹218.03 crore in the second quarter of FY27 against ₹24.13 crore reported in the year ago period.
However, Equitas SFB’s long-time CEO PN Vasudevan announced his resignation amid conflict of interest concerns. As the stock crashes 12%, is it the best time for investor to purchase the stock?
The second consecutive day of crash in the small finance bank stock has come as the sudden leadership change continues to spook investors. The bank, on Thursday informed about Vasudevan’s exit amid conflict of interest concerns as his daughter runs a non-banking finance company.
Vasudevan has led the Equitas SFB as managing director and CEO for over a decade. Over the past few years, investors had repeatedly raised the issue of conflict of interest and it was weiging on the stock performance too, stated Vasudevan in his resignation letter.