Business · Companies · 8 hrs ago
Equitas CEO resigns amid concerns over perceived conflict of interest
P N Vasudevan is stepping down as CEO of Equitas Small Finance Bank after investors repeatedly raised concerns about a perceived conflict of interest.
His daughter, Varshini Vasudevan Pathangi, founded Unico Housing Finance, a non-bank lender that received a licence in 2023.
Vasudevan said the relationship had been disclosed to the bank’s board and India’s central bank, and that Equitas had made only one short-term deposit with Unico, which was repaid; he said it had made no loans to the company.
He said the continuing concerns were weighing on Equitas shares and affecting value creation for shareholders and employees.
The shares fell as much as 20% before closing down 12.22%, although the bank reported its highest-ever quarterly profit in the September quarter.
The board has asked Vasudevan to remain until a successor takes over, while a committee searches for candidates from inside and outside the bank.
The new CEO will need approval from the Reserve Bank of India and other regulators.
Equitas Small Finance Bank CEO P N Vasudevan resigned, citing persistent investor concerns about a perceived conflict of interest involving his daughter’s housing finance company.
Vasudevan said his daughter’s role had been disclosed to the bank’s board and the Reserve Bank of India, and that the bank had no loans to the company.
He said the bank had made one short-term deposit to the company, which was repaid on maturity.
The board accepted his resignation and asked him to remain in the role until a successor takes charge.
Equitas shares fell as much as 20% during trading on October 29, 2026, before closing down 12.22%.
- Who
- P N Vasudevan, Equitas Small Finance Bank’s managing director and CEO, resigned.
- What
- He stepped down amid investor concerns about a perceived conflict of interest involving his daughter’s role at Unico Housing Finance.
- When
- October 29, 2026.
- Where
- Equitas Small Finance Bank in India.
- Why
- Vasudevan said investors had repeatedly raised concerns that the relationship was weighing on the bank’s shares and value creation.
This story does not have two clearly opposing sides.
Vasudevan began leading Equitas when it started as a microfinance institution.
Equitas became a small finance bank under Vasudevan’s leadership.
Vasudevan planned to step down for philanthropic work but withdrew his resignation after the board asked him to stay.
Unico Housing Finance received its Reserve Bank of India licence.
Vasudevan announced his resignation, and the board asked him to remain until a successor takes charge.
- CEO
- P N Vasudevan
- Bank
- Equitas Small Finance Bank
- Daughter’s company
- Unico Housing Finance
- Unico RBI licence
- 2023
- Share price move
- Fell as much as 20% on October 29, 2026
- Bank–Unico dealings
- One short-term deposit, repaid on maturity; no loans from the bank
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Sometimes perceptions are stronger than reality