A succession planning exercise is underway at Sanjiv Bajaj-led Bajaj Finserv group, and Moneycontrol has learnt from highly-placed sources that Rajeev Jain, the managing director of Bajaj Finance may get elevated to the board of Bajaj Finserv in an executive capacity.
Even in his new role, Rajeev Jain would be spending a significant part of his time overseeing Bajaj Finance, but he may also supervise some of the newer initiatives of the group, such as those in healthcare, as well as lend support to the transition in the group’s insurance companies.
Bajaj Finance is promoted by Bajaj Finserv, which holds around 54 percent stake in the Rs 3.25 lakh crore lending arm.
Earlier this month, Bajaj and German financial services company Allianz SE, announced a breakup of their 24-year old joint venture in the insurance space, leading to Bajaj Finserv buying out Allianz’s 26% stake in the life and general insurance arms over next few months.
Anup Saha, who joined Bajaj Finance in 2017 from ICICI Bank and was elevated to the role of deputy MD recently, may take over the reins of the NBFC from Jain. It is also leant that Saha might liaison with Jain on a regular basis after the transition. The change in leadership is expected to be announced by March 31, coinciding with the conclusion of Rajeev Jain's tenure as the MD of Bajaj Finance.
Sanjiv Bajaj will remain as the chairman of Bajaj Finance, however, sources say Rajeev Jain will continue to play an important role at Bajaj Finance, especially at a time when the company’s 3.0 strategy is unfolding. "With aspirations to develop into a Fin-AI led company, the internal thinking is that Jain should spend more time on strategic initiatives and Saha should step up on day-to-day operations and business,” said a person aware of the developments at Bajaj Finance.
Read More: Bajaj Finserv to 'evaluate' IPOs for life, general insurance arms after Allianz exit
Another banker told Moneycontrol that the employees are aligned to the upcoming changes. “Tweaks to the reporting structure has been underway for over a year, and this may not come as a surprise for employees, even if the changes were to be implemented by end of this fiscal,” he added.
An email to Bajaj Finserv seeking comment on the matter remained unanswered till publishing the article.
Rajeev Jain had joined Bajaj Finance in 2007 as CEO of the company and is seen as the person instrumental in cementing Bajaj Finance’s position as India’s leading non-bank lender. “If Bajaj Finance has become a market creator in the consumer lending space, it would not have been possible without Jain’s hands on style of leadership from his day one in the organisation,” a senior banker said.
During the December quarter investor call, Jain reassured analysts that he would like to remain associated with Bajaj Finance, though the ultimate decision would be that of the board.
Bajaj Finserv is India largest NBFC with the largest non-bank lending business, with a presence across other sectors such as insurance, stock broking and asset management. It is designated as a top-tier NBFC by RBI since October 2022.
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