PNB Housing Finance: CEO Resignation Abrupt, But Franchise Fundamentals Intact— Motilal Oswal Maintains 'Buy'

While the PNB Housing Finance's board has reaffirmed its commitment to the franchise’s growth and stability, the new CEO may either chart a new strategic course or build upon the strategy formulated by their predecessor. Given the current lack of clarity, brokerage have its earnings estimates unchanged and will await further clarity on the CEO appointment.

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Motilal Oswal Report

PNB Housing Finance Ltd. has made considerable progress over the past few years, with improvements across asset quality, business mix, and overall operating performance. The company’s transformation—marked by its shifting focus toward emerging and affordable housing, exit from lower-margin segments like super-prime and riskier segments like corporate lending, and strengthening of internal controls and collection architecture—has laid a solid foundation for quality growth.

We will closely track the progression of this leadership change and look for continuity in strategic priorities, particularly in retail expansion, asset quality maintenance, and execution in the affordable housing segment. A smooth transition with minimal disruption to the current trajectory will be key to regaining investor confidence.

We have kept our EPS estimates unchanged (for now) as the fundamentals remain intact and the business continues to demonstrate operational strength. However, we will closely monitor developments around the CEO’s transition and its impact, if any, on strategic continuity and execution. Reiterate our Buy rating with a target price of Rs 980 (based on 1.2x Mar’27E P/BV).

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