Shares of PNB Housing Finance experienced a sharp decline on Friday, August 1, 2025, after the announcement of Managing Director and Chief Executive Officer Girish Kousgi's resignation. The stock plummeted as much as 16% during intraday trading, reaching a low of ₹823.95 on the BSE. The resignation, tendered on July 30, 2025, and effective from the close of business hours on October 28, 2025, came as Kousgi decided to pursue opportunities outside the company.

Kousgi's departure, just three years into his four-year term which he began in October 2022, has triggered uncertainty around the leadership continuity at the housing finance firm. The company has affirmed its commitment to growth and stability, initiating a search for a new leader. The Board of Directors expressed their appreciation for Kousgi’s leadership and service during his tenure. Kousgi also thanked the board members, stakeholders, management, and colleagues for their support during his "exciting and rewarding journey".

Despite the leadership change, PNB Housing Finance has stated that its strategic priorities, business focus, and growth trajectory remain intact. The company has begun the process of selecting a new CEO. However, market analysts are taking a cautious stance, with some recommending a "sell" on the stock due to potential downside and near-term volatility.

The stock's reaction reflects investor concern over the abrupt departure of Kousgi, who played a key role in the company's transformation strategy since joining in 2022. Under his leadership, PNB Housing Finance saw its stock surge over 3.2 times, reaching highs of ₹1,200 in recent months from a low of ₹370 in November 2022. This positive momentum has now been disrupted, leading to increased trading volumes and heightened investor activity.

While the company maintains that its strategic direction remains unchanged, the market has reacted sharply to the leadership uncertainty. The resignation comes amid an already cautious market environment, further weighing on investor sentiment. The stock is under pressure, and analysts will be closely monitoring developments in the coming sessions. PNB Housing Finance will also have to appoint a new director on the Board of Directors of PHFL Home Loans and Services Limited, and PEHEL Foundation, the subsidiaries of the company, as Kousgi will cease to be a director on the Board of Directors of these subsidiaries with effect from October 28, 2025.