Mumbai, Aug 1 (IANS) After the PNB Housing Finance board approved resignation of its MD and CEO Girish Kousgi, the company’s shares fell by 16 per cent during the intra-day trade on Friday.

The shares touched the lower band at Rs 838.3 per share on BSE and got locked in the lower circuit. At 9.28 am, PNB Housing shares were trading 10 per cent lower at Rs 887.6 per share.

In the earnings call after the June quarter results, Kousgi said PNB Housing Finance was confident in achieving a higher NIM guidance of 3.7 per cent in ongoing fiscal, up from 3.6–3.65 per cent, with affordable and emerging segments adding to margins.

Already, in Q1 FY26, PNB Housing Finance had a 23 per cent year-on-year growth in net profit to Rs 534 crore. Strong loan expansion, a 3.74 per cent net interest margin (NIM), and improved asset quality drove this growth.

Many brokerages gave this credit to the CEO and had already noted that his resignation will act as headwind for the shares. The board said it will “immediately” commence a search for a “seasoned professional with proven expertise and industry experience”.

Chairman of the Nomination and Remuneration Committee of PNB Housing Finance, R Chandrasekaran said, “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.”

Kousgi announced his resignation on October 28 to pursue career goals outside the company. Before his resignation shares were trading at Rs 947 a piece. However the current level of shares is also far from its 52 week low of Rs 746.

PNB Housing Finance, promoted by Punjab National Bank, is India’s third-largest housing finance company under Girish Kousgi. On May 2, 2025, the Carlyle Group exited its stake, and PNB became its largest shareholder with about 28.1 per cent holding. PNB Housing Finance said on August 1 that the strategic priorities, business focus and growth trajectory will remain ‘firmly intact’, building on the foundation by Kousgi.

The mid-cap housing finance company has delivered an average Return on Equity (ROE) of 11.6 per cent over the past three years. Price-to-Earnings (P/E) ratio stands at 10.5 and the Price-to-Book (P/B) ratio is at 1.27.

—IANS

aaron/na