Shares of PNB Housing Finance cracked more than 15% today, following the resignation of its MD and CEO Girish Kousgi before the completion of his term.

PNB Housing Finance Share Price

About PNB Housing Finance

PNB Housing Finance offers retail customers housing and non-housing loans, including individual home loans, loans against property, and non-resident property loans, among other services.

As of FY25, 72% of its loan book comes from individual housing loans and the remaining from the non-housing loan segment.

PNB Housing Finance (FY25 Loan Book Rs 75,756 Cr)

Source: Investor Presentation

It’s promoted by the Punjab National Bank (PNB), which holds 28.1% stake as of June 2025.

PNB Housing Shareholding Breakup – June 2025

Source: BSE

PNB Housing CEO’s Sudden Resignation

In a press release, the company said Kousgi has resigned and will step down from his role effective October 28, 2025. He joined the organisation in October 2022 for four years.

Source: Press Release

The kneejerk reaction in its stock price after the resignation comes as Kousgi has played a key role in transforming PNB Housing, scaling new businesses and improving asset quality.

PNB Housing Finance emerged as the third-largest housing finance company in India during Girish Kousgi’s tenure.

Since 2022 when he took over, the company’s topline has grown while bottomline has more than doubled.

PNB Housing Financial Snapshot

Particulars (Rs Cr)	FY21	FY22	FY23	FY24	FY25
Revenue	7,565	6,141	6,491	7,016	7,651
Financing Profit	1,230	1,111	1,416	2,015	2,542
Net Profit	925	822	1,056	1,527	1,949

Source: Company

Even shares of PNB Housing Finance have surged over 200% since he joined. 

Outlook

Following the CEO and MD’s exit, PNB Housing Finance assured investors today and said the strategic priorities, business focus and growth trajectory will remain ‘firmly intact’, building on the foundation by Kousgi. 

Source: Press Release

Last week when the company declared its Q1 results, Kousgi had said that PNB Housing Finance is confident to achieve a higher NIM guidance of 3.7% as against the previously stated range of 3.6–3.65%, with affordable and emerging segments driving the margins.

Affordable Segment Loan Assets on the Rise

Source: Investor Presentation

Emerging Market Segment Loan Assets on the Rise

Source: Investor Presentation

As part of its future plans, the company has expanded with 40 new branches in FY25 and is focusing on expanding in South, North, and West regions.

Source: Investor Presentation

All being said, the housing finance industry is one of the most competitive segments of the Indian economy, with the banking sector having a significant presence. Banks have an edge over housing finance companies due to access to relatively low-cost funds raised through deposits. 

Nevertheless, with the rise of both affordable and premium housing, housing finance business is on an upward trajectory, due to growing economy, increased urbanization, government incentives, acceptability of credit in society and rise in nuclear families.

Conclusion

The housing finance sector is riding a strong growth wave — thanks to India’s expanding economy, rising urbanisation, government support, growing credit awareness, and the shift towards nuclear families.

Naturally, this has pulled in a crowd. With more players entering the space, competition has intensified, making it harder to protect market share and margins.

Banks still hold a key advantage — they can raise cheaper funds through deposits. So, whenever interest rates dip, banks can act faster. Housing finance companies, on the other hand, have no choice but to follow — or risk losing ground.

That said, industry tailwinds remain strong. And in this race, it’s the market leaders who are best positioned to win first — the others will follow, if they can keep up.

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