Equitas Small Finance Bank witnessed a dramatic drop as long-time leader PN Vasudevan resigned over conflict-of-interest worries surrounding his daughter's firm, Unico Housing Finance. Vasudevan noted that market perceptions of the venture created a persistent overhang on the stock price. The sell-off entirely overshadowed a massive net profit surge to ₹218.03 crore for the second quarter. Amid the steep decline, brokerage Motilal Oswal retained a positive outlook, anticipating stable underlying operations.
Key points
Executive leadership departures tied to perceived governance issues can completely derail…: Executive leadership departures tied to perceived governance issues can completely derail positive momentum from strong quarterly financial earnings.
Outgoing management previously disclosed the family ties to both the bank's board and the…: Outgoing management previously disclosed the family ties to both the bank's board and the Reserve Bank of India.
Brokerage Motilal Oswal Financial Services maintained a Buy rating on the stock with a ta…: Brokerage Motilal Oswal Financial Services maintained a Buy rating on the stock with a target price of ₹75 per share.
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Shares of Equitas Small Finance Bank crashed nearly 12% during Friday’s intraday trading session, extending their losses for the second consecutive session. The sharp sell-off came despite the bank reporting a strong set of Q2 results for the second quarter of FY27.
The Chennai-headquartered small finance bank reported a multifold increase in its net profit to ₹218.03 crore in the second quarter of FY27 against ₹24.13 crore reported in the year ago period.
However, Equitas SFB’s long-time CEO PN Vasudevan announced his resignation amid conflict of interest concerns. As the stock crashes 12%, is it the best time for investor to purchase the stock?
The second consecutive day of crash in the small finance bank stock has come as the sudden leadership change continues to spook investors. The bank, on Thursday informed about Vasudevan’s exit amid conflict of interest concerns as his daughter runs a non-banking finance company.
Vasudevan has led the Equitas SFB as managing director and CEO for over a decade. Over the past few years, investors had repeatedly raised the issue of conflict of interest and it…
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