Chennai-based Equitas Small Finance Bank (ESFB) on Wednesday said the Reserve Bank of India (RBI) has approved the re-appointment of Vasudevan P N as the managing director and chief executive officer of the bank for one year.

"We wish to inform that pursuant to the Bank’s application vide its letter dated May 23, 2022, RBI has approved the proposal to re-appoint Vasudevan P N as the Managing Director & Chief Executive Officer of the bank, for a period of one year with effect from July 23, 2022," the bank said in a regulatory filing.

Earlier in May this year, ESFB founder and CEO Vasudevan had asked the lender to look for his successor as he wanted to step down to pursue ''a distinct set of goals''. He is also the managing director of Equitas, which began as a microfinance institution in 2007 and was later converted into a bank in 2016.

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In a letter to ESFB last month, Vasudevan expressed his desire to quit but did not give a timeline. Vasudevan said he along with his wife has created a public charitable trust in their daughter's name, Varshini Illam Trust, and that they have launched a project in the trust to take quality medical and therapy treatment to rural and semi-urban areas at their doorstep to those in the age group of 0-3 years.

"The board would be forming a search committee shortly to undertake the process of identifying a successor. Vasudevan would continue as the MD & CEO till the succession and transition process is completed," ESFB said in its stock exchange filing on May 19.