PN Vasudevan journey is one of extraordinary determination and purpose.
Born and raised in Tamil Nadu, he began his professional life working in Cholamandalam Finance, a vehicle finance division within the Murugappa Group. Over fourteen years, he steadily climbed the ranks, earning respect and experience. But deep down, PN Vasudevan’s aspirations went far beyond personal success or corporate achievements. He had a vision that stretched to the underserved corners of society, a vision to uplift those who had long been overlooked by traditional financial systems—slum dwellers, beggars, and the working poor.
This burning desire to make a difference compelled PN Vasudevan to take a bold leap of faith. Leaving the comfort and stability of his corporate role, he set out to bridge the gap between formal banking and the unbanked segments of society. He knew that many individuals lacked access to credit, trapped in cycles of poverty not because of their inability to repay, but because they had never been given the chance. At the age of 45, while most professionals consider settling into routine career paths, PN Vasudevan chose to uproot his life to pursue this mission. He mortgaged his house in Chennai’s Anna Nagar and embarked on what many considered an impossible task. In 2007, Equitas was born.
The concept was revolutionary in its simplicity: provide small loans—starting from as little as Rs. 5000—at fair interest rates, and create a framework where borrowers could repay these loans through structured, transparent collection mechanisms. Unlike the predatory lenders who charged exorbitant rates of 40% or more, Equitas began offering loans at a far more reasonable 25.5%. These loans weren’t just transactions; they were lifelines. By establishing small weekly repayment groups, Equitas created a system of trust and accountability. In the span of just three months, Equitas disbursed loans worth Rs. 16 crore—a testament to the massive unmet demand for fair credit among India’s lower-income groups.
The growth trajectory was stunning. By November 2008, Equitas had disbursed over Rs. 200 crore and achieved a CRISIL rating of mfR3—the highest given to a startup that year. However, the path was not without peril. By 2010, the microfinance sector faced a catastrophic downturn in Andhra Pradesh, triggered by farmer suicides and non-repayment crises. Many established microfinance institutions were wiped out. PN Vasudevan and Equitas were at a crossroads. Refusing to give up, he pivoted the company’s model, diversifying into used vehicle financing, housing loans, and other products for customers who lacked traditional banking histories.
This strategic shift was transformative. By 2012, Equitas had crossed the Rs. 1000 crore mark in assets under management, attracting a Rs. 100 crore investment from the World Bank’s International Finance Corporation. The company’s relentless focus on delivering value to those at the base of the economic pyramid set it apart. By 2015, Equitas served over 2.7 million customers and operated 572 collection centers. The Reserve Bank of India soon recognized its progress, granting Equitas in-principle approval to become a Small Finance Bank.
Equitas’s public listing in 2016 marked another milestone, as its Rs. 2175 crore IPO was oversubscribed by more than 17 times. In the years that followed, the company diversified into agriculture, gold, and working capital loans for small businesses. By 2017, Equitas had become a scheduled commercial bank, cementing its position as a trusted name in India’s financial ecosystem.
Today, Equitas Small Finance Bank is a powerhouse, serving more than four million customers through a network of over 860 branches across 17 states. With advances totaling Rs. 34,337 crore, deposits worth Rs. 36,129 crore, and a net worth of Rs. 5969 crore, the bank’s current valuation exceeds Rs. 45,000 crore.
Through it all, PN Vasudevan remains a humble, grounded figure. His early years of working out of his car, his willingness to mortgage his home to fund his dream, and his tireless dedication to those who needed him most, speak volumes about his character. PN Vasudevan’s journey is not merely a business success story; it is a powerful reminder of what can be achieved when vision, perseverance, and an unwavering commitment to social good come together.
PN Vasudevan: The man who proved that courage, coupled with a clear mission, can truly reshape lives and build enduring legacies.
