Can Fin Homes to let Kousgi go Oct 20, may ask headhunter to find successor

Stock under pressure for third day on the trot, sheds 2.34% to close at Rs 552.15 a share on BSE on Wednesday

Can Fin Homes Ltd will relieve its managing director and chief executive officer (MD & CEO) Girish Kousgi on October 20, 2022 after he had conveyed his decision on Monday to resign citing personal reasons.

Meanwhile, the firm's stock remained under pressure for the third day in a row after the company announced his resignation, closing 2.34 per cent lower at Rs 552.15 a share on the BSE. The share had tumbled 4.1 per cent on Tuesday and 7.25 per cent on Monday.

The Bengaluru-based mortgage lender said in filing with BSE that Kousgi would be relieved on October 20 after office hours. Its board held a meeting to take stock of developments following resignation.

Neither Can Fin Homes nor its promoter, Canara Bank, responded to queries sent on the succession plan, the impact on business and fund raising. The company was planning to invite capital this year following shareholders' approval to raise up to Rs 1,000 crore.

Bank officials said the company would engage a search firm to find Kousgi's successor. The resignation would not impact the company's operations and business as the firm functions under clear rules and regulatory guidelines.  

Promoted by Canara Bank, Can Fin Homes is a deposit-taking housing finance company registered with National Housing Bank. It has a presence in 21 states and Union Territories, and operates primarily in the affordable housing segment.

Can Fin Homes reported a net profit of Rs 162 crore in Q1FY23, on a loan book of Rs 27,538 crore.