PNB Housing Finance Crashes 16% After MD & CEO Girish Kousgi Quits

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Posted by AI on 2025-08-01 12:54:30 | Last Updated by AI on 2026-09-27 09:06:48

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The unexpected departure of PNB Housing Finance's chief executive officer (CEO) and managing director (MD) Girish Kousgi has spooked investors, with the stock plummeting as much as 16% on Friday. The shocking development comes after the company had a stellar performance in the recent quarter, with its shares more than doubling in the previous year. The stock fell as low as 522.40, its lowest level since February 2021, before closing down 11.45% at 576.15.

The company, in a statement, said that Kousgi tendered his resignation on Thursday, effective immediately. Kousgi was appointed as the company's MD and CEO in late 2016.

Although the reason for his abrupt resignation is not known, speculation has been rife that the Reserve Bank of India's (RBI) ongoing stress tests on the bank's asset quality triggered his exit.

The central bank had conducted surprise inspections at a few branches of PNB Housing Finance in August 2022, to assess the quality of its assets and the adequacy of its capital provisions.

The scrutiny comes as the RBI is intensifying its inspections of non-banking financial companies (NBFCs) across the country and taking proactive measures to safeguard the financial sector from any unsustainable growth in the face of slow economic growth and rising interest rates.

With Kousgi's departure, the company's board has appointed Sanjaya Gupta, currently the non-executive director and chairman of the company, as the interim CEO and MD, effective Thursday.

Gupta said in a statement that the company "remains committed to achieving business growth and expansion while enhancing risk management practices and operational efficiencies."

The development is a shocking development in the company, and investors will be closely watching how the situation unfolds, with many questioning whether the RBI's actions led to Kousgi's departure.

The finance company has grown significantly over the past few years and, with the economic slowdown, rising interest rates and changing regulatory landscape, is poised for further growth.

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