PNB Housing Finance, India's prominent mortgage financier, has been put into chaos after the unexpected resignation of its Managing Director and CEO, Girish Kousgi. The action, effective from October 28, 2025, and announced on July 31, is a year ahead of schedule and has created a cascading crisis of leadership and the market at the most critical juncture for the housing finance industry.
The shockwaves were almost instant. PNB Housing shares plummeted up to 18% on the BSE, their largest one-day fall in more than four years, and pulling the stock into the F&O ban list after trade volumes swelled exponentially. The sell-off wiped out over a quarter of the company's market capitalisation in a mere five sessions, causing the stock to be down 23% from the announcement date, ranking it as the worst performer on the Nifty Smallcap 50 index, and making its year-to-date performance negative.
Analysts cite Kousgi’s turnaround track record as pivotal for PNB Housing’s operational recovery and stock rally since 2022: under his tenure, shares had more than tripled, and the company reported robust growth in its retail loan book, which touched ₹76,923 crore as of June 2025. The company also reported strong first-quarter results, with a 23% YoY rise in profit to ₹534 crore and improvement in asset quality, underscoring how the leadership change, rather than fundamental performance, is driving panic.
Kousgi’s resignation is the third by a full-time MD & CEO at PNB Housing to occur before the scheduled end of term, deepening concerns about persistent instability at the top. The exit comes on the heels of other senior departures, including the Chief Sales Officer and Business Head for the affordable segment—putting pressure on the board to quickly restore stability and direction. In reply, PNB Housing has hired Jatul Anand as Executive Director and Valli Sekar as Chief Business Officer for affordable housing, marking a move to steady the ship and continue strategic momentum.
The board and majority owner Punjab National Bank (28% holding) are looking for an outside successor. The firm has assured shareholders of a seamless transition, with Kousgi himself actively engaging with the leadership team to ensure continuity and confidence. PNB Housing reaffirmed its dedication to business growth and quality, thanking the outgoing CEO for his contribution in helping establish the solid foundation now in position. However, market analysts recognise increased execution risk, particularly as the new management will be under pressure to maintain recent gains in the face of continued sector pressures and contracted liquidity conditions.
PNB Housing's present crisis is a textbook example of how changes in leadership—even when underlying operational basics remain strong—can overturn investor sentiment and imperil strategic continuity. The next few weeks will challenge both the board to restore confidence and the new leaders to perform, as PNB Housing attempts to re-establish stability in a hostile market.
