Equitas Small Finance Bank announced on December 23 that PN Vasudevan has decided to remain as MD and CEO of the bank in response to the Board's suggestions.
Vasudevan announced his intention to step down in May this year to devote his time towards social welfare through his public charitable trust.
The Board noted that Vasudevan had expressed his desire to move on after the process of identifying a successor was completed in May 2022. But he had agreed to the Chairman's suggestion to defer tendering his resignation until then.
According to the bank's statement, the Board believes that management continuity and Vasudevan's leadership will help it sustain its growth in a stable, scalable, and inclusive manner.
As a result of this, the current process of identifying a successor to him will be halted, according to the Bank's statement.
Vasudevan's current term as MD & CEO expires on July 22, 2023. The Board has decided to extend the tenure for another three years, subject to approval by the Reserve Bank of India and shareholder approval, as applicable.
Vasudevan stated in his letter to the Chairman that he is happy to withdraw his earlier expressed desire to leave the Bank.
"I thank you for your guidance and advice. As discussed, I am happy to withdraw my desire expressed earlier to step down from the Bank. I remain committed as ever to pursue our Mission of creating the most valuable bank for all its stakeholders through happy employees. I look forward to continued guidance and support from you and the Board on this mission," he said.
He also expressed hope that over the next few years they have the opportunity to build a highly respectable banking institution, including applying for a Universal Bank licence.
Vasudevan is the founder of Equitas and has been associated with its journey as a microfinance institution dating back to 2007. The entity was converted into a bank, under his leadership, in 2016.
In the quarter ended September 2022, Equitas SFB reported over two-fold jump in its net profit at Rs 116 crore on good growth in loan disbursals.
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