PNB Housing Finance Ltd shares plunged over 15% on August 1, following the company’s announcement that MD & CEO Girish Kousgi’s resignation has been accepted by the board. This marks the fourth consecutive day of decline for the stock, as markets digested the surprise leadership change at a time of business recovery.
Kousgi’s Departure and Market Reaction
Girish Kousgi, who took over as MD and CEO in October 2022, will step down from his role effective October 28, 2025, to pursue opportunities outside the organisation. During his tenure, he was credited with driving innovation, improving asset quality, and aligning the business with customer-centric solutions.
The board acknowledged his leadership and mentorship and has confirmed that a transparent, merit-based search process has been initiated to appoint a new external candidate.
Despite assurances from the board and the promoter entity Punjab National Bank (which holds a 28% stake), investors reacted negatively, leading to a sharp fall in the stock.
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Q1 Update: Strong Guidance, but Sentiment Weighs
Just a few days earlier, during the Q1 FY26 earnings call, Kousgi had expressed confidence in achieving a higher Net Interest Margin (NIM) guidance of 3.7%, compared to the previous 3.6–3.65% range. He cited strong performance in affordable housing and emerging segments as the key drivers of margin expansion.
Under his leadership, PNB Housing Finance’s stock had tripled since October 2022, emerging as India’s third-largest housing finance company by market share.
Board’s Assurances
Chairman of the Nomination and Remuneration Committee, R Chandrasekaran, stated that the company remains committed to its long-term strategy. The board expressed confidence in the team’s ability to maintain growth momentum, improve asset quality, and preserve profitability.
PNB’s MD, Ashok Chandra, confirmed that Kousgi’s resignation was purely personal and not linked to business performance. He also clarified that PNB has no plans to alter its stake in the HFC.
Neutral Analysis
The stock’s sharp drop reflects investor uncertainty around leadership transition despite strong operational metrics.
Business fundamentals remain intact, with upbeat guidance on margins and growth.
The selection of a new CEO will be crucial in restoring market confidence.
Going forward, investor focus will likely shift to how quickly the new leadership is appointed and whether they can sustain the positive trajectory built under Kousgi’s tenure.
