Equitas Small Finance Bank has secured Board approval for the issuance of up to ₹500 crore in Lower Tier II Non-Convertible Debentures. The decision was taken during a meeting held on September 16, 2026.

The bank plans to issue these instruments through private placement to one or more eligible investors. The debentures are rated, listed, unsecured, subordinated, transferable, redeemable, and fully paid up. They will be categorized as Lower Tier II Capital in compliance with the Basel II framework on Capital Adequacy.

Instrument Details

The issuance involves 50,000 debentures with a face value of ₹1 lakh each. The securities will be issued in dematerialized form and listed on BSE Limited. Specific details regarding tenure, coupon rates, and payment schedules are yet to be finalized by the Board.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 (read with Part A of Schedule III) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The trading window for designated persons remains closed from September 10, 2026, and will reopen 48 hours after this information is made public. N Ramanathan, Company Secretary, confirmed the disclosure.

Equitas Small Finance Bank shareholders approved a Qualified Institutions Placement (QIP) of up to ₹1,250 crore to raise capital during its 10th Annual General Meeting held on September 9, 2026.

The resolution passed with a special majority, securing 95.917% of votes cast in favor. Institutional investors accounted for the bulk of the support, while non-institutional public shareholders also backed the measure with 99.903% approval.

Capital and Debt Issuance

Alongside the equity raise, members authorized the issuance of redeemable unsecured non-convertible debentures or bonds on a private placement basis for up to ₹500 crore. This facility is intended to augment Tier-II capital and fund general corporate purposes within the bank's overall borrowing limits.

The debt issuance resolution received near-unanimous support, with 99.999% of votes polled in favor. Public institutions voted entirely in favor, while non-institutional shareholders approved the move by 99.897%.

Board and Audit Appointments

Shareholders reappointed Mr. Vasudevan P N as Managing Director and Chief Executive Officer for a three-year term effective from July 23, 2026. The resolution passed with 99.995% of votes in favor. His remuneration was also fixed by shareholders, receiving 99.966% approval.

Ms. Geeta Dutta Goel was reappointed as an Independent Director for a second consecutive term until December 26, 2029. This special resolution secured 99.726% of votes.

M/s. Sundaram & Srinivasan, Chartered Accountants, were appointed as one of the Joint Statutory Auditors until the conclusion of the 13th AGM in 2029. Their appointment and remuneration for FY27 both passed with 99.999% and 99.999% approval respectively.

Mr. Balaji Nuthalapadi was reappointed as Executive Director by rotation, with his remuneration also approved by shareholders.

What the Numbers Show

Voting participation was heavily skewed toward institutional investors. Public institutions held 808,379,071 shares and polled 83.11% of outstanding shares for the financial statements adoption. In contrast, public non-institutions held 335,553,036 shares but polled only 2.01%. This concentration indicates that institutional sentiment drives the bank's governance outcomes, particularly for high-stakes capital raises like the QIP where institutions voted 95.88% in favor compared to 99.90% among retail investors.