P N Vasudevan, MD & CEO, Equitas Small Finance Bank
There are no other transactions including any loans by the bank to the NBFC,” he said. Despite his explanation to investors, he said, the perception of conflict continues to persist. “I am told by investors that this ‘overhang’ is causing the stock to underperform, impacting value creation for both shareholders and employees.
He cited the board’s concerns over his daughter being a co-promoter of another NBFC. The development comes just two months after the SFB inaugurated its new corporate office in Chennai. “My being the MD of a bank and my daughter being the co-promoter of an NBFC are within the regulatory framework of the Banking Regulations Act. In my investor meetings over the past three years, I have been repeatedly asked about the perceived conflict of interest. In reality there is no conflict of interest, since there is no transaction at all between our bank and the NBFC (except one short term deposit about two and half years back, which was duly repaid on maturity). Sometimes perceptions are stronger than reality. Under the circumstance, it is important that we remove the ‘overhang’ arising out of the perception issue. Accordingly, I would like to step down from the bank. I am sure that with this ‘overhang’ removed, the stock should reflect the financial strength of the bank, benefiting all stakeholders including employees,” he added. You Can Also Check: Gold Rate in Chennai | Silver Rate in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai | Chennai AQI | Weather in Chennai | Petrol Price in Chennai | Diesel Price in Chennai | CNG Price in Chennai | LPG Price in Chennai
Chennai: Equitas Small Finance Bank (SFB) managing director & CEO P N Vasudevan, who was instrumental in transforming the micro finance institution into an SFB, tendered his resignation on Thursday.