The Reserve Bank of India (RBI) has approved the extension of the tenure of Equitas Small Finance Bank (SFB) Managing Director and Chief Executive Officer (MD & CEO) P.N. Vasudevan for one year beginning July 23, in line with the request of the bank, the SFB informed exchanges on June 15.
The bank had earlier this month received SEBI approval for the Scheme of Amalgamation of Equitas Holdings with the bank.
With SEBI and RBI’s approvals coming in, the merger process of Equitas SFB only requires approvals from shareholders, creditors, and NCLT approvals, people in the know said.
Vasudevan, who founded Equitas in 2007 as a microfinance institution (MFI), announced his decision on May 19 to move on from the SFB to work for his trust going ahead.
In an interview to Moneycontrol on May 20, Vasudevan said the reverse merger process of Equitas Holdings with Equitas SFB will likely be completed by March 2023, adding that he was open to taking up a role at the bank even after his exit.
The bank's board too is keen to accommodate him, provided the banking regulator clears the proposal, Vasudevan told Moneycontrol on 20 May. “It’s a long way…we just had a discussion on the board and we haven’t discussed it in great detail.
The board expressed their desire that if regulator permits then even after a successor joins then you will be associated with bank in some form or other,” he said.Eventually, the goal would be to gain a universal baking license and the SFB will think about the same post completion of the reverse merger, he said.