P N Vasudevan, managing director and chief executive at Equitas Small Finance Bank Limited, resigned Oct. 29 after citing investor concerns about a perceived conflict involving his daughter.
In his letter, Vasudevan said he plans to pursue personal and social initiatives. He said his daughter is a co-promoter of a nonbanking financial company (NBFC) that received a Reserve Bank of India (RBI) license in 2023. He added that investors had raised questions about the perceived conflict over the past three years.
Vasudevan said removing what he called a market “overhang” could help the bank’s share performance and create value for shareholders and employees. “Sometimes perceptions are stronger than reality,” he wrote.
He said Equitas and the NBFC had no transactions other than a short-term deposit made about two and a half years earlier and repaid at maturity. The filing does not name the NBFC.
The board agreed to the resignation and asked Vasudevan to remain in the post until a successor takes over; the bank will announce his final day later. Its Nomination and Remuneration Committee will identify internal and external candidates and recommend them to the board for consideration and approval. Any appointment requires RBI and other necessary approvals.
The resignation comes just over three months into a term scheduled to end July 22, 2029. The RBI approved Vasudevan’s reappointment on April 23, 2026, and the board set the term to begin July 23. Shareholders approved it at the Sept. 9 annual meeting.
Vasudevan started Equitas Micro Finance India Private Limited in 2007, according to the bank’s 2025 annual meeting notice. That business, Equitas Finance and Equitas Housing Finance merged to form the small finance bank in 2016. Before joining Equitas, he spent about two decades at Cholamandalam Investment and Finance Company Limited and more than 18 months as an executive vice president and head of consumer banking at Development Credit Bank Limited. He holds a bachelor’s degree in physics from the University of Madras and is a qualified company secretary.
The bank reported total business above ₹1 trillion and record quarterly profit after tax of ₹218 crore for the quarter ended Sept. 30, 2026. RBI guidelines place small finance banks within its financial-inclusion framework, which aims to expand savings and credit access for small business units, small and marginal farmers, micro and small industries, and other unorganised-sector entities.
Vasudevan also sought to leave in 2022 to build a corpus for Varshini Illam Trust, which supports doorstep therapy for babies from low-income families. He withdrew that intention in December 2022 after discussions with the board. The current filing sets no deadline for selecting a successor or completing the handover.
