Vasudevan said he would continue in his post till the succession and transition process is completed. The bank would form a search committee soon to identify his successor.
Vasudevan is founder of Equitas, which started off in 2007 as a Micro Finance Institution (MFI).
The institution was later converted into a bank in 2016. His family has established trust to carry out work in the health and education sector.
The lender, in a filing with BSE, said the board of directors took on record his decision. It desires that Vasudevan to continue association with the bank in capacity permissible under applicable statute and regulations.
The bank began succession planning early this month when it decided to elevate two senior bank executives to its board as whole-time directors designated as executive directors. These two executives are Murali Vaidyanathan, Head--Liabilities, Wealth Management, Digital Banking and Marketing, and Rohit Phadke, the Head--Assets.