Shares of Equitas Small Finance Bank hit the 20% lower circuit on Thursday after P N Vasudevan resigned as managing director and chief executive officer (MD & CEO), overshadowing a sharp rise in the bank’s September-quarter profit.
Shares of the small finance bank plunged 25.3% from the day’s high of ₹69.65 to a low of ₹52.04.
Vasudevan has expressed his intention to step down to pursue personal and social initiatives. However, he will continue to serve as MD & CEO until his successor takes over, the bank said in an exchange filing.
The bank’s board has accepted his resignation and asked the Nomination and Remuneration Committee to identify suitable candidates, both internal and external, for the role. The appointment will be subject to approval from the Reserve Bank of India (RBI) and other applicable regulatory authorities.
Vasudevan has been associated with Equitas since its inception as a microfinance institution in 2007 and led its transition into a small finance bank in 2016. The board acknowledged his contribution to the bank’s growth and development.
Equitas SFB Q2 results: Net profit jumps, NII rises 33%
Equitas Small Finance Bank reported a sharp increase in net profit to ₹218 crore in the September quarter, compared with ₹24 crore in the year-ago period.
Net interest income (NII), the difference between interest earned and interest paid, rose 32.6% year-on-year to ₹1,026 crore from ₹774 crore.
Asset quality improved sequentially. Gross non-performing assets (GNPA) declined to 2.29% from 2.42% in the June quarter, while net NPA edged down to 0.7% from 0.71%.
However, operating profit slipped 0.7% quarter-on-quarter to ₹402 crore from ₹405 crore.
Tax expense increased to ₹69.34 crore from ₹9.4 crore in the year-ago quarter.
Equitas SFB reappoints Anil Kumar Sharma as part-time chairman
Separately, the board approved the reappointment of Anil Kumar Sharma as part-time chairman for a further three-year term, from April 25, 2027, to April 24, 2030.
The reappointment is subject to approval from the RBI and other applicable regulatory authorities.