PNB Housing Finance Limited (PNBHFL) has reported a strong performance for the first quarter, showcasing significant growth in its retail loan book and improved asset quality. However, the company also announced the upcoming departure of its Managing Director and CEO, Girish Kousgi.

Robust Financial Performance

PNBHFL's retail loan book grew by an impressive 18.1% year-on-year, reaching ₹76,923.00 crores. The company's total loan book stood at ₹77,732.00 crores, reflecting its strong market position in the housing finance sector.

Key financial highlights for Q1 include:

• Net Interest Margin (NIM) remained stable at 3.74%
• Return on Assets (ROA) achieved 2.57% on an annualized basis
• Gross Non-Performing Assets (NPA) improved to 1.06% from 1.08% in the previous quarter
• Net Interest Income increased by 17% year-on-year to ₹760.00 crores
• Profit After Tax (PAT) rose by 23% year-on-year to ₹534.00 crores
• Return on Equity (ROE) stood at 12.39%

Strategic Focus on High-Yielding Segments

The company reported significant growth in its high-yielding segments:

• Affordable segment disbursements grew by 30% year-on-year
• Emerging Markets segment saw a 32% year-on-year increase in disbursements

In contrast, the Prime segment experienced slower growth, with disbursements increasing by only 1% due to margin pressures. This strategic shift aligns with the company's focus on higher-yielding business segments.

Operational Highlights

• The company reclassified 20 branches from Prime to Emerging segment to focus on higher-yielding business
• Total Pan India branch network stands at 356, with 200 branches in the Affordable segment
• Cost of borrowing declined by 8 basis points to 7.76% following repo rate cuts

Asset Quality Improvement

PNBHFL demonstrated strong asset quality management:

• Recovered ₹57.00 crores from written-off pools
• Achieved negative credit costs of 27 basis points
• Maintained stable collection efficiency

Leadership Change

In a separate announcement, PNBHFL disclosed that Mr. Girish Kousgi, the company's Managing Director and Chief Executive Officer, has tendered his resignation to pursue opportunities outside the organization. The Board of Directors has accepted his resignation, which will be effective from October 28, 2025.

Mr. Kousgi, who has been with the company for nearly three years, will also step down from his positions on the boards of PHFL Home Loans & Services Limited and PEHEL Foundation, the subsidiaries of PNBHFL.

The Board of Directors expressed their appreciation for Mr. Kousgi's leadership and dedicated service during his tenure, acknowledging his role in the company's transformational journey.

As PNB Housing Finance continues to strengthen its position in the housing finance sector, the company's focus on high-yielding segments and improved asset quality bodes well for its future growth prospects. The search for a new CEO will be a critical task for the Board in the coming months to ensure a smooth transition and continued strategic execution.

PNB Housing Finance Limited (PNBHFL) announced today that its Managing Director and Chief Executive Officer, Girish Kousgi, has submitted his resignation to pursue opportunities outside the company. The Board of Directors accepted his resignation on July 31, 2025, with the effective date set for October 28, 2025.

A Transformative Journey

Kousgi, who served the company for close to three years, described his tenure as "wonderful and fulfilling." During his leadership, PNBHFL underwent a transformational journey, positioning itself as a significant player in the housing finance industry.

In his resignation letter, Kousgi stated, "The Company has gone through a transformational journey and today it is future ready and well positioned to lead & stay as a significant player in the industry."

Smooth Transition Assured

While stepping down, Kousgi expressed confidence in the management team's capability to handle the transition. He committed to ensuring a smooth handover process, stating, "I am committed to a smooth transition and will always make myself available to assist in any way possible during the period."

Board's Acknowledgment

The Board of Directors acknowledged Kousgi's contributions, placing on record their sincere appreciation for his leadership skills, mentorship, and dedicated service throughout his tenure as the Managing Director and CEO.

Additional Roles

Kousgi will also cease to be a director on the boards of PNBHFL's subsidiaries - PHFL Home Loans and Services Limited and PEHEL Foundation - effective October 28, 2025.

Recent Company Performance

The resignation comes shortly after PNBHFL's Q1 FY'26 earnings conference call, held on July 22, 2025. During the call, the company reported strong performance metrics:

Looking Ahead

As PNBHFL prepares for this leadership transition, the company's focus remains on maintaining its growth trajectory and strong financial performance. The search for Kousgi's successor will likely be a key priority for the Board in the coming months.

The resignation of Girish Kousgi marks the end of an important chapter for PNB Housing Finance Limited. As the company moves forward, it will aim to build upon the strong foundation laid during Kousgi's tenure and continue its journey as a significant player in India's housing finance sector.