Punjab National Bank holds more than 28% stake in the housing finance company.
Also Read: PNB Housing shares tank after CEO Girish Kousgi exitsOn whether PNB plans to raise its stake, he said, “As of now, we don’t have any such plan.”
The PNB Housing board has engaged an external HR firm to find a new CEO. “They will be looking for some good candidate,” Chandra added.
These are edited excerpts of the interview.
Q: Why exactly did MD and CEO Girish Kousgi resign? The official reason that’s given is that he’s seeking external opportunities. But was it him initiating the resignation discussion, or was it something that was collectively made by the promoters as well as his side?
A: I will make it very clear. Nothing from the promoter side, nothing from any other shareholder side. He has some family commitments at Bengaluru, and that is the only reason for which he has put in his paper. Nothing to be seen other than this.Now, in this particular case, I think we are one of the highest shareholders in this. We have more than 28% shareholding in this, and we are holding that entire shareholding for many years. And I have firm belief that this company is growing fast, and this company will continue to grow fast in future also. Yesterday, the Punjab National Bank board had the meeting, and the Nomination and Remuneration Committee meeting also took place. He has put up the paper, and subsequently, already the Nomination and Remuneration Committee and the board have engaged.
Q: A couple of things don’t tie in together. On the one hand, you’re saying that he’s going for family commitments, etc. But at the same time, if you look at the prior few days as well, you had Dilip Vethi Swaran, who resigned as the Chief Sales Officer too. So, a top rung of the company’s leadership is resigning. Is there something more than just personal reasons?
A: Absolutely. It is only the personal reason. Nothing more than that.
Q: When a big name like that leaves, there’s always fear—asset quality, something with regard to, you know, smelling a rat in some way in the books. Could you assure your investors that nothing of that sort—the guidance that’s been given with regard to growth, asset quality, margins—all of them stand as per what it was earlier?
A: As a promoter, I can only tell that we don’t see any challenge in this. This is the personal reason he has cited. And he is moving to Bengaluru. I think PNB Housing Finance, the board also—they are going to have some investor meet today, and they will clarify all those issues. But we don’t see any big challenge, anything happening in the company.
Q: You don’t see a big challenge. But, on April 8, Anujai Saxena, who was the business head of the affordable business, resigned with effect from May 19. A little over a month was the notice, and for a very senior leader. On July 23, Chief Sales Officer resigned. And then we have, within seven days, on July 31, Girish Kousgi resigning as Managing Director and Chief Executive Officer. Three leadership positions resigning in a month and a half can’t be a coincidence.
A: I can’t make any comment on other resignations—what has happened. Everybody looks for some better opportunity also at the same time. I personally don’t know what is the reason for others for resignation. But as far as I know about the Managing Director’s resignation, definitely it is only for the personal reason.
Q: The captain of the team has moved out—all eyes on who the new captain is. When exactly will you be seeing the new captain taking charge of PNB Housing Finance? Because till then, there’s a bit of a flux. So, could you tell us by when? And do you have a candidate in mind?
A: Nothing is in our mind. The Nomination and Remuneration Committee has studied itself. They have engaged some HR firm. And very shortly they will be looking for some good alternative. And let us wait and see. PNB Housing Finance board members also—they are also conducting the investors meet today. That’s already started. They have also released the press release, I believe, today. So, they will explain all those things—what is the process they are following.
