On Tuesday, Bajaj Finance said in a stock exchange filing that Rahul Bajaj, the non-executive chairman, "as part of succession planning, has decided to demit the office as Chairman of the Board w.e.f. close of business hours on 3l July 2020."
"He would, however, continue to serve the Company as a Non-Executive Non Independent Director," the statement said.
"The Board of Directors, at its meeting held today, has approved the appointment of Shri Sanjiv Bajaj, currently the Vice Chairman of the Company, as Non-Executive Chairman of the Company with effect from l August 2020, in place of Shri Rahul Bajaj," the statement added.
Shares of the non-finance banking company (NBFC) fell 6.43 percent to Rs 3,220 on BSE after the announcement.
The stock was already trading in red after the company declared its June quarter results on the same day.
Bajaj Finance reported a 19.4 percent drop in consolidated net profit at Rs 962.32 crore for the first quarter of 2020-21. In the same period of the previous year, the company had posted a net profit of Rs 1,195.25 crore.
The company said its business operations in the April-June period were considerably impacted due to COVID-19 outbreak and the consequent lockdown which remained in force for the most of the quarter. The lockdown caused a significantly lower business acquisition and constraints on recovery of overdues from customers, it said.