Equitas Small Finance Bank announced the cessation of Prof. SamirKumar Barua as an Independent Director, effective from the close of business hours on September 22, 2026. The departure follows the natural conclusion of his appointed term.

The bank filed this disclosure with stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that Barua’s exit was consequent to the completion of his tenure as an Independent Director.

Director Details

The Board of Directors placed on record its appreciation for Barua’s contributions and guidance during his service. Key details regarding the change are outlined below:

Regulatory Compliance

This disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (LODR) Regulations, 2015. It also adheres to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The Company Secretary, N Ramanathan, signed the digital submission on behalf of the bank.

Equitas Small Finance Bank has received a show cause notice from GST authorities demanding ₹533.81 crore for financial year 2022-23. The notice proposes disallowance of exemption on interest income amounting to ₹479.33 crore.

Notice details and components

The notice was issued by the Office of the Deputy Commissioner (ST), Central-III Zone, Commercial Taxes Department, Government of Tamil Nadu. It was received on September 21, 2026, under Section 73 of the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017.

The aggregate demand comprises tax, interest, and penalty components as detailed below:

Bank's legal position

Equitas Small Finance Bank stated that it believes it has substantive factual and legal grounds to contest the notice. The bank argues that interest or discount on deposits, loans, or advances is specifically exempt under Entry 27(a) of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017. This exemption applies except for interest involved in credit card services.

The bank noted that it has consistently applied this statutory treatment. Furthermore, relevant assessments for prior years were completed without treating such exempt interest income as taxable turnover. The bank is examining all matters raised and will submit a detailed response with reconciliations within the prescribed timeline.

Nature of the dispute

The show cause notice inter alia proposes tax regarding several issues beyond the primary interest income dispute. These include:

• Short payment of tax on outward supplies
• Difference in turnover described as suppressed turnover
• Short payment under reverse charge
• Credit notes and inter-State branch transfers
• Rate differences and excess Input Tax Credit (ITC)
• ITC identified as ineligible

The bank clarified that the notice is at the show-cause stage and represents the position proposed by the authority. It does not constitute a final adjudication or a crystallised liability. The financial impact, if any, depends on the outcome of the proceedings and cannot presently be determined.