Equitas Small Finance Bank Shares Plunge 30%, CEO Resignation Drives Losses

Equitas Small Finance Bank (ESFB) slid 30% from Thursday's peak of ₹71.20 to ₹49.08 on Friday, Oct 30, erasing ₹2,000 crore in market cap.

The fall followed the filing that CEO PN Vasudevan had stepped down with immediate effect, though he will continue to discharge duties until a successor is appointed. He cited a perceived conflict of interest involving an NBFC linked to his daughter, a claim the bank denies.

September quarter results showed a 32.6% jump in net interest income to ₹1,026 crore from ₹774 crore. Gross NPA improved slightly, while net NPA held steady. Mutual funds own 46.7% of the bank, with foreign investors holding 15.8%.

HSBC kept a buy rating but trimmed its price target to ₹70 from ₹98, noting that the leadership change has dampened the impact of the earnings beat. The share price now sits at a 52‑week low, having lost 23% YTD.

The two‑day plunge has erased all year‑to‑date gains, leaving the stock down 23% for the year and at a 52‑week low. Investors are waiting for an interim CEO announcement and a clearer governance plan before the market can reassess.