While the move caught both shareholders and investors by surprise, Kousgi clarified that the decision was entirely personal, driven by career aspirations, and unrelated to Carlyle’s exit from the housing finance company.
Still, the announcement triggered a sharp reaction in the markets, with shares plunging over 17%, the steepest single-day fall in nearly seven years.
Kousgi is the third managing director and chief executive to exit the company since its long-serving chief Sanjay Gupta stepped down in 2020. The company’s Nomination & Remuneration Committee has now initiated a CEO search, evaluating both internal and external candidates.
If an internal candidate is selected, the process is expected to conclude shortly. An external appointment, however, could take another one to two months following Kousgi’s departure.
Let’s unpack what triggered this market reaction, and what it means for the future of PNB Housing.
Why has Kousgi’s exit rattled investors?
According to Motilal Oswal, the resignation has triggered concerns around “key man risk.”
The brokerage noted that Kousgi had begun laying a strong foundation and strategic roadmap for future growth, through product mix realignment and healthy execution. It added that while the franchise has its inherent strengths, the board will need to instill greater investor confidence regarding the robustness of asset quality and its ability to identify a suitable successor.
The resignation also comes at a time when nominee directors of promoter Punjab National Bank (PNB), including its new MD & CEO and executive director, are yet to be inducted onto the board of PNB Housing Finance, pending approvals from the Department of Financial Services (DFS).
Some investors have also raised questions about Kousgi’s chequered career, according to industry watchers.
How the company fared under Kousgi
Since taking charge in October 2022, Kousgi oversaw a sharp turnaround.
During his tenure, PNB Housing raised ₹2,500 crore in capital, reduced gross non-performing assets (GNPA) from 6.06% in October 2022 to 1.07% as of June 2025, and brought corporate bad loans down to 0% in the past year. Return on assets improved from 1.6% in H1FY23 to 2.55% in FY25.
Its loan book grew 47%, from ₹52,124 crore in October 2022 to ₹76,923 crore by June 2025, driven by a strategic pivot towards emerging and affordable housing, and a gradual exit from lower-margin segments like super-prime and riskier corporate lending.
In fact, the company scaled its affordable housing franchise to ₹5,744 crore, growing faster than peers over the past two years. Since Kousgi’s appointment, the stock had surged 181%, until the latest drop.
Past setbacks
Kousgi had succeeded former CEO Hardayal Prasad, under whose leadership the firm failed to raise ₹4,000 crore via preferential allotment of shares and convertible bonds in 2021. That proposed capital raise, led by Carlyle Group–backed vehicles, Aditya Puri’s family investment office, and a few other investors, had triggered opposition from proxy advisory firm SES, which flagged concerns to the Securities and Exchange Board of India. The objections ultimately stalled the deal.
The failed transaction would have increased Carlyle’s stake from 32% to 50%, while reducing PNB’s holding below 26%.
Where the peers stand
LIC Housing Finance, India’s largest housing finance company, saw its loan book grow from ₹2.68 trillion in September 2022 to ₹3.1 trillion by June 2025. Its share price rose 39% over the past three years.
Meanwhile, Bajaj Housing Finance’s assets under management (AUM) jumped 65%, from ₹69,228 crore in March 2023 to ₹1.20 trillion by June 2025. Its return on assets stood at 2.3% in Q1FY26.
This puts PNB Housing’s growth, especially in affordable housing, in a strong position relative to its peers, despite recent leadership turbulence
