NEW DELHI: Girish Kousgi, the Managing Director and CEO of PNB Housing Finance, has resigned from his position.
Kousgi submitted his resignation on July 30, 2025, to explore new opportunities. The board accepted it with an effective resignation date of October 28, 2025.
Additionally, the board noted that Kousgi will no longer serve as a director on the boards of PHFL Home Loans and Services, and PEHEL Foundation, both subsidiaries of the company, effective from October 28, 2025.
R. Chandrasekaran, the chairman of the nomination and remuneration committee at PNB Housing Finance, stated, “The board will commence a thorough, transparent, and merit-based process to select a new leader who can further enhance the legacy of PNB Housing Finance. We are optimistic about identifying a qualified professional soon who can drive our strategic direction and long-term value creation.”
The company’s retail loan portfolio grew by 18.1% year-on-year to ₹76,923 crore as of June 30, 2025. The overall loan portfolio stood at ₹77,732 crore as of the same date, with the affordable and emerging market segments comprising 37% of the retail loan book.
“Colletions remained robust in Q1 FY’26, with significant recoveries leading to a 27 bps reversal in credit costs. The gross NPA was recorded at 1.06% as of June 30. We continue to work towards achieving a 1% NPA. The NIM remained stable at 3.74% for the quarter, yielding a ROA of 2.57% on an annualized basis,” remarked Kousgi during the earnings call.
Disbursements in the affordable segments surged by 30% year-on-year, while those in emerging markets increased by 32% year-on-year. To avoid margin pressure, disbursements in prime segments slowed significantly. Consequently, overall retail segment disbursements grew by 14% year-on-year, reaching ₹4,980 crore.
The gross NPA improved to 1.06% as of June 30, 2025, down from 1.08% on March 31, 2025, and 1.35% on June 30, 2024.
Regarding borrowing costs, a reduction in the repo rate led to an 8 bps decline in the cost of borrowing to 7.76% in Q1 FY25 from 7.84% in Q4 FY25. On an incremental basis, borrowing costs decreased by 39 bps during the quarter. Consequently, the company also reduced its PNBHFR by 10 bps, effective from July 1, 2025.
Vinay Gupta, CFO of the company, mentioned during the earnings call, “Our operating expenses increased by 12% year-on-year to ₹216 crores compared to ₹193 crores in Q1 FY25. This rise is significantly lower than the 18% increase in the retail loan book. Our Opex to ATA for Q1 stands at 1.02%, and we continue our guidance of 1% to 1.1% for future periods. Our pre-provision operating profit grew 17% year-on-year to ₹632 crore overall. Credit costs remain negative at 27 bps for Q1 FY26.”
During the quarter, the company successfully recovered ₹57 crore from the written-off pool, with approximately ₹700 crore remaining in corporate write-offs and about ₹400 crore in retail.
