CEO Quits Over Perceived Conflict, Regrets Stake Dilution

P. N. Vasudevan has stepped down as CEO of Equitas Small Finance Bank, attributing his resignation to a perceived conflict of interest that negatively impacted investor confidence. Vasudevan revealed that his initial intention to reduce his stake in 2007 was to fund philanthropic initiatives focused on children with special needs. He now regrets this substantial dilution, admitting he would have approached wealth creation differently.

Despite the leadership change, Equitas Small Finance Bank continues its pursuit of a universal banking license, engaging in ongoing discussions with the Reserve Bank of India. The bank has already surpassed the ₹1 lakh crore business milestone and anticipates doubling this figure within the next four to five years, driven by strong demand in its focused lending segments.

Vasudevan reflected on his past decisions, including reducing his salary in 2008 to align with organizational pay scales. The bank's consistent annual growth of around 25% over the last decade, despite economic challenges, highlights its robust business model and diversified product offerings serving unmet credit demands in India.