Shares of PNB Housing Finance fell sharply by over 10% on August 1, following the company's announcement that its MD and CEO Girish Kousgi has resigned, effective October 28, 2025. The sudden leadership exit triggered investor concerns, especially given Kousgi’s transformative role in reviving the company’s performance over the past two years.

Brokerages reacted negatively to the development, highlighting that Kousgi had been instrumental in scaling new business verticals, enhancing asset quality, and steering the housing finance company through a strong recovery phase since taking over in October 2022. During his tenure, PNB Housing’s share price surged more than three-fold, though the stock has now dropped over 11% in the past one month.

The board has assured stakeholders that the company's strategic focus, growth trajectory, and asset quality discipline will remain firmly intact. In a statement, R Chandrasekaran, Chairman of the Nomination and Remuneration Committee, said that the board will launch an immediate search for a seasoned industry professional through a “rigorous, transparent and merit-based” process.

Despite the abrupt resignation, Kousgi will remain at the helm until late October, allowing for a managed transition. The board commended his leadership and emphasized that the existing team is well-equipped to sustain momentum in growth, margins, and credit quality.

In the Q1 FY26 earnings call, Kousgi had confidently guided for a higher Net Interest Margin (NIM) of 3.7%, above the earlier range of 3.6%–3.65%, driven by strength in the affordable housing and emerging segments. This forward-looking statement had initially buoyed investor sentiment before today’s setback.

As leadership uncertainty clouds the short-term outlook, analysts are expected to closely monitor the new CEO appointment process and how it aligns with the lender’s medium-term strategy.