Equitas Small Finance Bank Shares Surge up to 7% After Balaji Nuthalapadi Named Interim CEO
Shares of Equitas Small Finance Bank rebounded sharply, jumping as much as 7% in trade following the announcement that the lender’s board has approved the appointment of Balaji Nuthalapadi as interim Chief Executive Officer.
The decision, made during a board meeting on November 3, 2026, upon the recommendation of the Nomination and Remuneration Committee, is subject to final approval from the Reserve Bank of India (RBI). The leadership transition comes in the wake of the unexpected resignation of long-standing founder, Managing Director, and CEO P.N. Vasudevan on October 29, 2026.
Leadership Continuity Calms Nervous Street
The appointment of Nuthalapadi has provided much-needed relief to investors after Vasudevan’s sudden departure sparked heavy selling, dragging the stock into a 20% lower circuit and causing a cumulative decline of over 27% across two trading sessions.
Vasudevan stepped down citing perceived conflict-of-interest concerns relating to a non-banking financial company (NBFC) co-promoted by his daughter, which had recently secured an RBI licence. While Vasudevan noted in his resignation letter that no actual conflict existed, he chose to resign as the board's perception could not be resolved.
The board placed on record its gratitude for Vasudevan's leadership and confirmed that his formal relieving date will be finalised in consultation with him once RBI approval for the interim CEO is received.
Profile of the Interim Chief
Balaji Nuthalapadi brings extensive operational and technology leadership to the helm:
- Current Role: Serving as Whole-Time Director (Executive Director – Technology and Operations) at Equitas Small Finance Bank since March 2025.
- Banking Background: A seasoned executive with over 28 years of experience at Citibank, where he began his career in 1997.
- Global Exposure: Previously served as Managing Director and Head of Citi Solutions Centers in India, Head of India Operations and Technology, and Head of Centralized Controls Testing Execution.
- Education: An alumnus of the Indian Institute of Management (IIM), Ahmedabad (Batch of 1996).
Hunt for Permanent CEO Underway
Equitas Small Finance Bank announced that its board has simultaneously initiated the formal process to identify a regular, permanent Managing Director and CEO. The lender will submit its shortlist to the central bank in accordance with regulatory governance guidelines. Nuthalapadi will steer the bank until the permanent successor officially assumes charge or until the RBI stipulates otherwise.
The governance turbulence had overshadowed the bank’s second-quarter earnings, wherein Equitas SFB posted a significant jump in net profit to ₹218 crore for the September 2026 quarter, compared with ₹24 crore in the corresponding quarter of the previous fiscal year. Analysts noted that swift board action to put seasoned interim leadership in place helps ring-fence the lender’s operational momentum while succession unfolds.
