PNB Housing Shares Dip 17% as CEO Girish Kousgi Resigns

1 Aug 2025 , 01:16 PM

PNB Housing Finance shares plunged sharply on Friday after the company’s board approved the resignation of its Managing Director and CEO, Girish Kousgi.

The stock hit its lower circuit limit, declining 17.41% intraday to touch ₹815.20 on the BSE at 11:52 AM.  The market reaction followed Kousgi’s resignation announcement on October 28. He cited personal career aspirations as the reason for stepping down.

The sudden leadership exit triggered investor concerns, especially since brokerages had credited Kousgi for the company’s recent performance. His exit is widely seen as a near-term headwind.

During the June quarter earnings call, Kousgi expressed confidence in achieving a higher Net Interest Margin (NIM) guidance of 3.7% for the current fiscal, slightly up from the previous 3.6–3.65% range. He attributed margin growth to expanding in affordable and emerging loan segments.

In Q1 FY26, PNB Housing Finance reported a 23% year-on-year jump in net profit, reaching ₹534 crore. This growth was driven by robust loan book expansion, a strong NIM of 3.74%, and better asset quality.

The board has announced it will immediately start the process to appoint a new MD and CEO. R Chandrasekaran, Chairman of the Nomination and Remuneration Committee, said a rigorous, transparent and merit-based selection would be conducted to find a leader capable of accelerating long-term strategic goals.

PNB Housing Finance is promoted by Punjab National Bank. PNB Housing Finance became its largest shareholder (28.1%) after the Carlyle Group exited its stake on May 2, 2025. Despite the leadership change, the company stated on August 1 that its strategic priorities and growth outlook remain unchanged. This is building on the operational foundation laid by Kousgi.

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