Equitas Small Finance Bank chief resigns, citing investor perception of conflict over NBFC link
Equitas Small Finance Bank said in a filing with NSE that its MD and CEO has resigned, citing a persisting investor perception of a conflict of interest, and will stay until a successor takes over.
Key points
- Equitas Small Finance Bank told the National Stock Exchange on 29 October 2026 that its managing director and chief executive officer has resigned.
- The resignation takes effect only when a successor takes over, and the new appointment needs the Reserve Bank of India's approval, the filing says.
- The board says it does not expect the transition to affect the bank's long-term vision; the chief executive continues in the role until then.
Photo: Blogtrepreneur / Wikimedia Commons, CC BY 2.0 (cropped). Representational image.
Equitas Small Finance Bank said on 29 October 2026 that its managing director and chief executive officer has resigned, citing a persisting investor perception of a conflict of interest linked to an NBFC co-promoted by his daughter. The board took note of the resignation the same day and asked him to continue until a successor is in place, according to the company's filing with the National Stock Exchange.
What Happened
The bank's note in the filing says he conveyed his intention to step down to pursue certain personal and social initiatives through which he believes he can contribute further to society.
In the resignation letter attached to the filing, the chief executive said his daughter is a co-promoter of an NBFC that received its licence from RBI in 2023, and that this had been disclosed to the board and to RBI. He wrote that "there is no conflict of interest", since there is no transaction between the bank and the NBFC apart from one short-term deposit about two and a half years ago that was repaid on maturity, and no loans from the bank to it. He said investors had repeatedly asked about the "perceived conflict of interest" over the past three years and that "sometimes perceptions are stronger than reality".
The filing says the resignation takes effect upon handover of responsibilities to his successor, on a date the bank will inform later. The board has asked its Nomination and Remuneration Committee to identify and recommend internal and external candidates. The appointment of the selected candidate is subject to the approval of the Reserve Bank of India.
In the letter, he also said the bank's total business crossed Rs 1 lakh crore in the quarter ended September 2026, with a quarterly profit of Rs 218 crore, which he described as its highest ever, and that its branch network is about 1,100 strong.
What It Means
The chief executive has confirmed he will continue to function in the role until his successor takes over, and the board said it does not expect the transition to have any impact on the bank's long-term vision. The date on which the resignation takes effect will be informed later, according to the filing.
Source: NSE filing
Sources & Citations
- NSE filing — National Stock Exchange of India