PNB Housing Finance witnessed significant market activity and an important leadership change, according to recent developments.

Block Trade Details

The company saw a substantial block trade on the National Stock Exchange (NSE) worth Rs 100.61 crores. The transaction involved approximately 1,200,179 shares changing hands at a price of Rs 838.30 per share. This block trade indicates notable investor interest in the company's stock.

Leadership Transition

PNB Housing Finance announced a significant change in its top leadership. Mr. Girish Kousgi, the company's Managing Director and Chief Executive Officer, has tendered his resignation. Contrary to speculations, Ashok Chandra, Managing Director and CEO of Punjab National Bank, clarified that Kousgi's resignation was due to personal family commitments in Bengaluru, not business-related issues or internal concerns.

Investor Call Scheduled

In response to the resignation, PNB Housing Finance has scheduled an investor call on August 4, 2025, at 08:00 AM IST. The call aims to address investor concerns about the leadership change and provide clarifications. Board members and the management team will participate in the call. The company has provided dial-in details for universal access, India toll-free numbers, and international toll-free numbers for Hong Kong, Singapore, UK, and USA. The call is being organized on shorter notice to promptly address investor concerns.

PNB's Stake and Future Plans

Punjab National Bank, which holds more than 28% stake in PNB Housing Finance, has no plans to increase its stake. The PNB Housing board has engaged an external HR firm to find a replacement CEO.

Addressing Concerns

When questioned about multiple senior leadership departures, including Chief Sales Officer Dilip Vethi Swaran and business head Anujai Saxena, Chandra maintained that Kousgi's exit was purely personal. He assured that the company faces no significant challenges and expressed confidence in PNB Housing Finance's continued growth trajectory.

Transition Period and Future Plans

Mr. Kousgi will continue in his role until October 28, 2025, ensuring a smooth transition. During this period, he will work closely with the Board and senior management to facilitate a seamless handover of responsibilities.

The company's Board of Directors has expressed its appreciation for Mr. Kousgi's leadership skills, mentorship, and dedicated service throughout his tenure. They have also affirmed their commitment to initiating a rigorous and transparent selection process to appoint a new leader who will further enhance PNB Housing Finance's legacy.

Company's Strategic Direction

Despite the impending leadership change, PNB Housing Finance has reaffirmed its commitment to its strategic priorities, business focus, and growth trajectory. The company stated that these aspects remain firmly intact, based on the strong foundation built during Mr. Kousgi's tenure.

The Board expressed confidence in the company's high-performing team, which has been instrumental in delivering strong performance. They believe this team will continue to achieve the company's goals of robust growth, maintaining asset quality, and improving margins.

Market Position and Future Outlook

PNB Housing Finance, promoted by Punjab National Bank, has emerged as the third-largest housing finance company in India. The company's management remains fully committed to executing its long-term strategy, underpinned by robust governance practices, prudent risk management, a customer-centric approach, and sustainable growth initiatives.

As PNB Housing Finance navigates this leadership transition, it continues to focus on its core strengths in the housing finance sector. The company's recent market activity, proactive approach to leadership succession, and the scheduled investor call underscore its importance in the Indian financial landscape and its commitment to long-term value creation for stakeholders.

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.