Equitas Small Finance Bank shares fell up to 16 percent on Thursday after the lender announced the resignation of its Managing Director and CEO, P N Vasudevan, effective October 29, 2026, amid concerns over a perceived conflict of interest.
The stock was trading at Rs 54.60 per share on the NSE, down 16.16 percent, at around 3.20 pm.
In an exchange filing, the bank said 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 letter, Vasudevan said his daughter is the co-promoter of a non-banking financial company (NBFC) that received a licence from the Reserve Bank of India (RBI) in 2023. He said the matter had been disclosed to the bank's board and the RBI through various declarations.
He said his position as the bank's MD and his daughter's role as co-promoter of the NBFC were within the regulatory framework of the Banking Regulation Act.