Date: August 18, 2026
Clarification Details
Equitas Small Finance Bank Limited issued this clarification in response to a Moneycontrol.com article titled "RBI questions 'nexus' between Equitas SFB and Unico Housing Finance" dated August 18, 2026.
Key Clarifications Provided:
Alleged Nexus with Unico Housing Finance:
- The bank strongly denies any "nexus" with Unico Housing Finance Private Limited that would violate regulatory guidelines
- Except for one specific deposit transaction, there have been no other transactions of any type between the two entities before or after this transaction
- The bank states that the question of a 'nexus' between the two entities does not arise due to the absence of any relationship
MD & CEO Disclosure Compliance:
- MD & CEO P N Vasudevan consistently disclosed his daughter's investment in Unico to the Board through annual disclosures
- These disclosures were also made at the time of his re-appointment as MD & CEO earlier in 2026
- The investment was disclosed to RBI when submitting proposals for re-appointment
- The bank confirms all required disclosures under applicable regulations were made for the MD & CEO's reappointment
Transaction Details with Unico:
- Only one transaction occurred: a bulk deposit of Rs. 25 crores placed by Unico with the Bank
- Transaction date: January 1, 2024
- Tenure: 89 days
- Interest rate: 7.5% per annum (the applicable bulk deposit rate published on the bank's website)
- Maturity date: March 30, 2024
- The deposit was repaid upon maturity
- No other transactions occurred before or after this transaction
- The bank has not given any loans to Unico and does not intend to do so in the future
Regulatory Compliance:
- The bank confirms MD & CEO P N Vasudevan complies with Section 10B(4)(c) of the Banking Regulations Act, 1949
- This provision prohibits a bank's Managing Director from having "substantial interest" in any other company
- Substantial interest is defined as holding beneficial interest (by individual, spouse, or minor child) exceeding:
- Rs. 2 crore paid-up capital, OR
- 10% of the company's paid-up capital, whichever is less
- Mr. Vasudevan's holdings are below these prescribed limits
Communication with Media:
- The bank had mail correspondence with Moneycontrol regarding related party transactions
- The bank provided details of the one deposit transaction to Moneycontrol
- The bank stated that communication between RBI and the Bank is confidential and will be disclosed only when required under RBI or SEBI guidelines