PNB Housing shares tank 17% as CEO quits
PNB Housing Finance's CEO, Girish Kousgi, resigned two months after Carlyle Group sold its 10.4% stake.
He says it's for personal career goals, but the market didn't take it well: shares dropped 17%.
This is the company's third leadership shake-up since 2020, and now there's a rush to find a new CEO.
Key man risk
Kousgi actually turned things around during his time—he slashed bad loans from 6.06% to just 1.07% and grew the loan book by 47%, focusing on affordable housing.
Investors are worried about "key man risk"—basically, what happens when a top leader suddenly leaves.
The company is already working on a backup plan and is in the process of bringing in new nominee directors from Punjab National Bank (pending official approval) to keep things steady.