Varshini Vasudevan Pathangi

Equitas Small Finance Bank Limited shares have fallen nearly 18% across two trading sessions following the announcement of managing director P. N. Vasudevan's planned departure, even as the lender reported its highest quarterly profit of ₹218 crore. With the stock valued at approximately 0.93 times reported book value, improving asset quality and a 13.5% annualised quarterly return on equity, investors face a difficult question about whether leadership uncertainty justifies the sharp valuation discount.