PNB Housing Finance stock plummets 18% on MD & CEO Girish Kousgi exit

Business Standard

16 hours ago

Shares of PNB Housing Finance plummeted approximately 18 per cent on Friday, closing at Rs 808.05 on the BSE, after the mortgage lender announced that its MD & CEO, Girish Kousgi, had resigned to pursue opportunities outside the company. His resignation will take effect on October 28, 2025, a year before his term was due to end.
"The sharp drop in shares of PNB Housing Finance was a result of an overreaction by the market to the MD & CEO's resignation, along with broader uncertainty and weakness in the market. Additionally, the housing finance sector has been broadly muted due to lower interest rates coupled with uncertainty in the IT sector, which is affecting overall demand for real estate and housing finance," said Kranthi Bathini, equity strategist at Wealthmills Securities.
To calm investor sentiment, the company issued a statement on Friday, assuring that its team will continue to work towards achieving the company's goals of robust growth, asset quality, and margins. The company's board will immediately begin searching for a seasoned professional with proven expertise and industry experience to fill the leadership role.
Additionally, Kousgi will work closely with the board and senior management to ensure a smooth transition during this period. The company also emphasized that its strategic priorities, business focus, and growth trajectory remain intact, based on the strong foundation that Kousgi helped build.
R Chandrasekaran, Chairman of the Nomination and Remuneration Committee at PNB Housing Finance, said, 'The Board will initiate a rigorous, transparent, and merit-based selection process to appoint a new leader who will further enhance the legacy of PNB Housing Finance. We are confident of identifying a suitable professional soon, who will further accelerate our strategic direction and long-term value creation.'
Kousgi was appointed MD & CEO of the company on October 21, 2022. His appointment was approved by shareholders through a postal ballot on December 22, 2022, for a term of 4 years, following the early exit of Hardayal Prasad, who resigned on October 20, 2022, for personal reasons.
'There seems to be a perception that the company has faced challenges in recent times. In 2019, the promoter, Punjab National Bank (PNB), decided to divest its stake in the company. PNB entered into share purchase agreements (SPA) with Varde Partners and General Atlantic Group, but the deal was later terminated in May 2019, with PNB continuing as the sole promoter,' said an industry expert.
'Later in 2022, the company saw an early exit from the then MD & CEO, Hardayal Prasad, who left a year before the end of his tenure. This year also saw multiple senior management exits, culminating in the resignation of the MD & CEO. Additionally, guidance from the board has been quite limited,' he added.
The company also saw multiple exits in the quarter, including Dilip Vaitheeswaran, Chief Sales Officer (Function Head), and Anujai Saxena, Business Head (Affordable Business), apart from the resignation of Kousgi.
In Q1 FY26, the retail loan assets of the company increased 18 per cent year-on-year (YoY) to Rs 76,923 crore, with a 143 per cent YoY increase in the affordable housing segment to Rs 5,744 crore and a 20 per cent growth YoY in emerging market segments to Rs 22,701 crore. The retail loan assets of the company stood at Rs 53,123 crore in the October-December quarter of FY23 (Q3 FY23).