PNB Housing Finance Shares Tumble 18% After CEO Girish Kousgi's Exit

A day after PNB Housing Finance announced the resignation of its MD and CEO Girish Kousgi, the company’s shares plunged nearly 18% at 12.30 PM on BSE.

On Thursday, the mortgage lender said that Kousgi had tendered his resignation to pursue opportunities outside the company. The board accepted his resignation on July 31, with his last working day set for October 28, 2025.

“After close to three years of a wonderful and fulfilling career with the company, I wish to pursue opportunities outside. The company has gone through a transformational journey and today, it is future-ready and well-positioned to remain a significant player in the industry,” Kousgi wrote in his resignation letter filed with the exchange.

In a statement, the lender said, “The Board of Directors places on record its sincere appreciation for his leadership skills, mentorship, and dedicated service as Managing Director and CEO of the company, and wishes him the very best in his future endeavours.”

The company further added that Kousgi will also cease to be a director on the boards of PHFL Home Loans and Services Ltd and PEHEL Foundation, subsidiaries of PNB Housing Finance, with effect from October 28.

Following the steep fall in PNB Housing Finance's shares on Friday, R. Chandrasekaran, Chairman of the Nomination and Remuneration Committee, said the company will initiate “a rigorous, transparent, and merit-based selection process to appoint a new leader.”

“We are confident of identifying a suitable professional soon, who will further accelerate our strategic direction and long-term value creation,” he noted in an exchange filing.

The company also acknowledged that under Kousgi’s tenure, PNB Housing Finance, promoted by Punjab National Bank, emerged as the third-largest housing finance company in India.

An analyst meeting has been scheduled for August 4 to address the leadership transition.

At 12.42 PM, shares of PNB Housing Finance were trading at ₹810, down 17.36%.

The stock had more than tripled since October 2022, when Kousgi took over as MD and CEO. However, it has declined over 11% in the past month.

Despite the abrupt exit, Ashok Chandra, MD of Punjab National Bank (which holds a 28% stake in the housing finance arm), told CNBC-TV18 that the resignation was purely for personal reasons and the company remains on a strong growth trajectory. He also clarified that PNB has no plans to either increase or reduce its stake. A headhunting firm has been appointed to find an external successor, expected to come from outside the PNB group.