PNB Housing Finance Shares Fall 16% After MD & CEO Girish Kousgi Resign

On Friday, PNB Housing Finance shares experienced a sharp fall of 16.5 percent, touching a day’s low price of Rs 822.80 on NSE after the resignation of Managing Director and CEO Girish Kousgi was disclosed through the company’s exchange filing. This sudden leadership change, effective from October 28, 2025, has triggered concerns among investors, especially considering that under Kousgi’s supervision, the company saw a turnaround. Under his tenure, the stock value saw significant growth, and the company’s strategic orientation shifted towards customer-centricity and asset quality improvement.

Kousgi’s exit is more impactful as it closely follows recent resignations in key verticals, such as the affordable housing division, which had demonstrated rapid growth. The board formally acknowledged his “transformational” role and credited him for aligning PNB Housing Finance for future readiness, underscoring the sense of loss and uncertainty that his resignation brings. During the June quarter post-results interaction, management reiterated their confidence in navigating the transition, stressing that the established business momentum and growth targets would remain unaffected in the near term.

Recent operational and financial results underline the strength of PNB Housing Finance’s business model. In Q1FY26, the company reported a 23 percent year-on-year increase in net profit to Rs 534 crore, though this was a marginal 3 percent decline over the previous quarter. Net interest income surged to Rs 760 crore, which is a 17 percent YoY jump and 4 percent QoQ growth, and net interest margins improved to 3.74 percent, up from 3.65 percent the previous year. Gross non-performing assets dropped to 1.07 percent, reflecting a visible improvement in asset quality. The capital adequacy ratio remained very strong at 29.68 percent, with Tier I capital at 28.96 percent. Total income for the quarter rose 13.6 percent year-on-year to Rs 2,081 crore.

These metrics are better compared to the company’s previous performances. Now, with the strategic focus on expanding its retail loan portfolio, especially in the affordable and emerging market segments. The management remains committed to this shift, planning to increase the share of high-yielding, affordable, and emerging market home loans to 50 percent of the total loan book by FY27. Currently, these segments contribute around 37 percent of the portfolio. This transition is supported by the planned addition of 50 to 60 new branches per year, with a total target of 500 branches by FY27, and 300 of them dedicated to affordable housing.

The CEO and board have consistently highlighted digital transformation, retail expansion, risk management, robust governance, and healthy capital buffers as pillars of resilience and the roadmap for the future. Notably, the "Roshni" affordable-home vertical, launched in early 2023, has scaled rapidly, with the affordable segment now set to comprise well over half of the total portfolio. 

Looking forward, the future of PNB Housing Finance after Kousgi's exit will depend on the board’s ability to induct a dynamic and competent leader who can ensure continuity in strategic execution. The market’s nervous reaction reflects widespread concern about leadership stability and execution risk. The transition thus represents both a challenge and an opportunity to test operational stability and to see whether the strong momentum built over recent years can continue uninterrupted under new leadership. Investors should closely monitor the appointment of the next CEO and subsequent quarterly performance to judge whether PNB Housing Finance can sustain and build on its recent trajectory.