Why is PNB Housing Finance stock down today?

PNB Housing Finance stock is down today. At 2:50 p.m. 1^st August, 2025 the stock price is down by 17.78%, trading at Rs 810.90. This decline is happening today because of the sudden resignation of its MD & CEO Girish Kousgi.

Resignation comes a week after the company posted good June quarter result

The resignation is surprising as it comes just a week after the company posted good June quarter result. Its profit in the quarter increased year-on-year by 23% to Rs 534 crore. Its Assets under Management (AUM) increased by 13% to Rs 82,100 crore. This because of the strong home loan demand India is seeing. This home loan demand is likely to remain strong, at least in the medium term.

The company’s asset quality also improved in the quarter. Its Gross Non Performing Assets (GNPAs) ratio improved to 1.06% from corresponding quarter of the previous year. Its net non-performing assets (NNPAs) ratio also improved to 0.69%. Non-performing assets are the loans given by the company on which interest and principal repayments are overdue for more than 90 days.

No specific, detailed reason has been given by the company for the sudden exit of Kousgi except that he will pursue personal goals. Kousgi will remain as CEO of the company till October 28^th.

The company’s stock outperformed the benchmark index by 168% during Koushgi’s tenure

Koushgi took over as CEO of the company in October 2022. The stock price of the company, before today, has gained 215.5% during his tenure. The benchmark Nifty index has gained 47.5% in this period. The company’s stock outperformed the benchmark index by 168% in this period. This explains the reason why some investors may be disappointed at his sudden exit.

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Source: NSE