Shares of PNB Housing Finance fell sharply by over 15 percent on August 1, a day after the lender informed that the resignation of MD and CEO Girish Kousgi has been accepted by the board, a move that some brokerage notes have cited as negative, given his role in transforming PNB Housing, scaling new businesses and improving asset quality.

This is the fourth day of fall for the shares of the housing finance company.

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.”

Girish Kousgi will step down from his role effective October 28 to pursue career aspirations outside the organization.

Ashok Chandra, the MD of promoter entity PNB, which holds 28 percent stake, told CNBC-TV18 that the Kousgi's resignation was only due to personal reasons, and the company will continue to see fast growth. The bank added that there are no plans to either exit its stake in the HFC, or to buy more shares. The new candidate will be from outside from the PNB group, and an HF firm has been mandated to look for an external candidate.

During his tenure, Kousgi drove innovation and strategic evolution, and aligned the company with customer-centric solutions. The board appreciated Kousgi's leadership and mentorship through his tenure and wished him best for his future endeavours. PNB Housing Finance, promoted by Punjab National Bank, emerged as the third-largest housing finance company in India during Girish Kousgi's tenure. The management said it is fully-committed to executing its long-term strategy and growth initiatives.

PNB Housing Finance assured on August 1 the strategic priorities, business focus and growth trajectory will remain 'firmly intact', building on the foundation by Kousgi. The board also exuded confidence that the team delivering the HFC's performance will continue to achieve growth, asset quality and margins.

During the earnings call after the June quarter 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.

Shares of the HFC have risen more than three-fold since Kousgi took over as MD and CEO in October 2022. However, in the last one month, PNB Housing's shares are down over 11 percent.