What happened
The board of Equitas Small Finance Bank on Tuesday, 3 November 2026, approved the appointment of Balaji Nuthalapadi as interim chief executive officer. Nuthalapadi is currently the bank’s Whole-Time Director (Executive Director).
The appointment is subject to approval from the Reserve Bank of India (RBI) and takes effect from the date of that approval, or another date the RBI sets, according to reports in BusinessLine and the Economic Times. The bank said the move was based on a recommendation of its Nomination and Remuneration Committee, CNBC-TV18 reported.
The post fell vacant after P. N. Vasudevan resigned as managing director and CEO on 29 October 2026. The board will decide his relieving date after the RBI approves the interim appointment, in consultation with him. It has also begun identifying a permanent successor and will send its recommendation to the RBI as per regulations.
According to the reports, Nuthalapadi began his career with Citi in 1997 in Chennai and has worked in several roles across Asia-Pacific, Europe, the Middle East and Africa. Since September 2024 he was Managing Director and Head, Centralized Controls Testing Execution at Citi.
What it means for you
If you hold a savings account or fixed deposit with Equitas SFB, the sources report no change to banking services or deposit terms. The announcement concerns top management only.
Deposits in banks, including small finance banks, are covered by deposit insurance up to the prescribed limit; see our explainer on how DICGC deposit insurance works.
For shareholders, CNBC-TV18 reported that the stock fell into a 20% lower circuit on 29 October, the day of the resignation, and lost more the next day. A circuit limit is the maximum a stock can move in a day. It was trading over 7% higher on Wednesday at ₹54.8, still down 15% so far this year, the channel said. The Economic Times reported a gain of about 9% in its headline.
Background
In his resignation letter, Vasudevan referred to a possible conflict of interest involving a non-banking financial company co-promoted by his daughter, which holds an RBI licence. He said there was no conflict, but the board’s perception could not be settled, CNBC-TV18 reported. He had proposed to step down in 2022 before deciding to stay on.
The developments overshadowed the bank’s second-quarter results. Net profit rose to ₹218 crore in the September quarter from ₹24 crore a year earlier. Net interest income, the gap between interest earned and interest paid, rose 32.6% to ₹1,026 crore from ₹774 crore.
Asset quality improved from the previous quarter. Gross non-performing assets (bad loans) fell to 2.29% from 2.42% in June, and net NPA eased to 0.7% from 0.71%.
What to watch next
The RBI’s decision on the interim appointment and the board’s recommendation for a permanent CEO are the next steps.
