Shares of PNB Housing Finance witnessed a sharp decline in intra-day trade on Friday after the company’s board accepted the resignation of Managing Director and CEO Girish Kousgi. The stock plunged as much as 16 per cent, hitting the lower circuit at Rs 838.3 on the BSE. At 9:28 AM, the scrip was down 10 per cent at Rs 887.6 per share.

The sudden leadership vacuum triggered investor concerns, despite the company posting strong Q1 FY26 earnings. Many analysts had previously flagged Kousgi’s leadership as a key driver of the company's recent performance and warned that his exit could weigh on investor sentiment.

Leadership Transition Sparks Market Jitters

Kousgi tendered his resignation on July 28, expressing intentions to pursue opportunities outside the organisation. His exit came shortly after the company reported robust quarterly earnings, including a 23 per cent year-on-year jump in net profit to Rs 534 crore for the April–June quarter. This growth was supported by a solid loan book expansion, a healthy net interest margin (NIM) of 3.74 per cent, and improvements in asset quality.

Despite the positive numbers, the market reacted strongly to the leadership change, especially as the stock was trading at Rs 947 prior to the resignation news. However, current levels still remain above the 52-week low of Rs 746.

Board Initiates Hunt For New CEO

In response to the development, the board announced it would "immediately" begin a search for a "seasoned professional with proven expertise and industry experience" to steer the company forward.

R Chandrasekaran, Chairman of the Nomination and Remuneration Committee, stated, “The Board will initiate a rigorous, transparent and merit-based selection process to appoint a new leader who will further enhance the legacy of PNB Housing Finance. We are confident of identifying a suitable professional soon, who will further accelerate our strategic direction and long-term value creation.”

Despite the market reaction, PNB Housing Finance stressed that its core business strategy, growth path, and operational focus remain unchanged. The company added that it will continue to build on the foundation laid during Kousgi’s tenure.