The industrialist will be succeeded by Sanjiv Bajaj, currently Vice-Chairman, the Bajaj Finance said in a regulatory filing on Tuesday. The veteran businessman also chairs the board of Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance Company since 2013. Besides this, he is also the Managing Director of Bajaj Holdings & Investment.
Rahul Bajaj's elder son Rajiv runs Bajaj Auto and younger one Sanjiv runs Bajaj FinServ.
“Rahul Bajaj, Non-Executive Chairman of the company, having been at the helm of the company since its inception in 1987 and the group for over five decades, as part of succession planning, has decided to demit the office as chairman of the board with effect from close of business hours on July 31, 2020," the company said.
On BSE, the stock fell further 6.43 percent to touch Rs 3,220 on the BSE.
In the filing, the company said its board has approved the appointment of Sanjiv Bajaj as Non-Executive Chairman of the company with effect from August 1, 2020, in place of Rahul Bajaj.
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In fact, Bajaj Finance posted a 19.40 percent year-on-year (YoY) decrease in consolidated net profit at Rs 962.32 crore on Tuesday for the quarter ended June 30.
The company said the business operations in the first quarter of FY21 were considerably hampered due to the Covid-19 pandemic and the lockdown. It led to significantly lower business acquisition and constraints on the recovery of overdue customers. However, sales rose 14.93 percent to Rs 6634.93 crore in the quarter ended June 2020 as against Rs 5773.04 crore during the previous quarter ended June 2019, as per the Business Standard report.