PNB Housing Finance CEO Girish Kousgi to Resign; Interim Leadership Appointed

PNB Housing Finance Ltd has officially announced that Girish Kousgi, its Managing Director and Chief Executive Officer, will be stepping down from his role effective October 28, 2025. Mr. Kousgi had submitted his resignation on July 30, which was subsequently accepted by the company's board on July 31. He will also be resigning from the boards of two PNB Housing Finance subsidiaries: PHFL Home Loans and PEHEL Foundation.

In the interim period, the management team will be guided by Jatul Anand, who serves as the Executive Director. The Board, chaired by D. Surendran (a Nominee Director from Punjab National Bank), will oversee the transition. The company is currently in the process of obtaining the necessary regulatory approvals for the appointment of a new Managing Director and CEO, with further updates to be provided in due course.

This leadership change follows a positive financial period for PNB Housing Finance. During the June quarter earnings call, Mr. Kousgi had expressed confidence in achieving a net interest margin of 3.7%, driven by growth in the affordable and emerging housing segments. For the September quarter, the company reported a significant 24% year-on-year increase in profit, reaching ₹582 crore. Furthermore, its gross non-performing assets improved to 1.04% from 1.24% a year prior.

Ahead of this management news, PNB Housing Finance's shares saw a slight uptick, closing 1.01% higher at ₹937 on the National Stock Exchange (NSE).

Impact Leadership changes at the CEO level can introduce a period of uncertainty for investors. However, the company's robust recent financial performance and its clear plan for interim leadership may help mitigate negative sentiment. The market will be closely watching the appointment of a permanent successor, which will be crucial for maintaining investor confidence and guiding the company's future growth trajectory. Rating: 6/10.

Difficult Terms: - Managing Director: A senior executive responsible for the day-to-day operations and management of a company. - Chief Executive Officer (CEO): The highest-ranking executive in a company, responsible for overall strategy, management, and decision-making. - Regulatory approvals: Official permissions or clearances required from government bodies or regulatory authorities before a company can undertake a specific action or transaction. - Interim: A temporary arrangement or period, lasting until a permanent solution is in place. - Executive Director: A director on the company's board who is also an employee involved in the company's daily management. - Board: A group of individuals elected by shareholders to oversee the management of a company and make major decisions. - Nominee Director: A director appointed by a significant stakeholder, such as a major shareholder or promoter, to represent their interests on the board. - Subsidiaries: Companies that are owned or controlled by a parent company. - Net interest margin (NIM): A profitability metric for financial institutions that measures the difference between the interest income generated and the interest paid out, relative to interest-earning assets. - Affordable and emerging segments: Refers to housing finance products targeted at lower to middle-income groups and market areas that are developing or growing rapidly. - Profit: The financial gain made after deducting expenses from revenue. - Gross non-performing assets (GNPA): Loans on which the borrower has defaulted on payments for a specified period, typically 90 days or more.