Rahul Bajaj will step down as the chairman of Bajaj Finance on July 31, 2020, Bajaj Finance said in a regulatory filing. Rahul Bajaj will be replaced by his son, Sanjiv Bajaj, who is currently the vice chairman of the company. Sanjiv Bajaj will assume the position of Non-Executive Chairman of the Pune-based non-banking financial company (NBFC) with effect from August 1.
Rahul Bajaj will, however, continue to serve the company as a non-executive non independent director, the company added.
"Rahul Bajaj, non-executive chairman of the company, having been at the helm since its inception in 1987 and the group for over five decades, as part of succession planning, has decided to demit the office with effect from close of business hours on July 31, 2020", Bajaj Finance said in release.
Sanjiv Bajaj also chairs the board of Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance Company, and is the Managing Director of Bajaj Holdings & Investment.
Sanjiv Bajaj, aged 49, holds a B.E. (Mechanical Engineering) degree from the University of Pune, M.Sc (Manufacturing Systems Engineering) from the University of Warwick, UK, and MBA from Harvard Business School, USA.
In related news, Bajaj Finance posted a 19.40 per cent year-on-year (YoY) decline in consolidated net profit at Rs 962.32 crore for the quarter ended June 30. The company said the coronavirus pandemic and the consequent lockdown impacted its business operations considerably during the April-June period, leading to significantly lower business acquisition and constraints on recovery of dues from customers.