Anup Saha resigns as Bajaj Fin MD: Impact & investment strategy explained

Bajaj Finance share may remain steady in the near-term with Rajeev Jain returning as the VC & MD, after Anup Kumar Saha resigned. Analysts weigh what this means for the stock ahead of Q1 results

Bajaj Finance shares: Bajaj Finance shares slipped in trade on Tuesday after the newly appointed Managing Director, Anup Kumar Saha, resigned from the post, leaving the non-bank finance company's (NBFC's) top spot empty within three months of taking over.  The shares erased opening gains to slip 1 per cent on the BSE in the intraday trade. Bajaj Finance stock hit an intraday low of ₹939.9 per share as against a 0.13 per cent rise in the benchmark Sensex index at 9:45 AM.

 

Why did Anup Saha resign?

According to the company's stock exchange filing, Anup Saha hung his boots as the Managing Director of Bajaj Finance Limited and a Director from the Board of Directors of the Company due to personal reasons.

 

Saha said his resignation will come into effect from the close of the business hours on July 21, 2025.

 

News reports, however, suggest that Anup Saha is amongst the top three candidates that IndusInd Bank may have proposed to the Reserve Bank of India (RBI) for the role of the new chief executive officer (CEO). IndusInd has submitted the recommendations in June 2025.

 

Anup Saha resigns: What this means for Bajaj Finance shares?

In a swift action, Bajaj Finance Board has entrusted Rajeev Jain to take up the roles and responsibilities of management of the company and has re-designated him as Vice Chairman and Managing Director (VC & MD) for the remainder of his term i.e. till 31 March 2028.

 

This will be in addition to his existing powers and roles as the Executive Vice-Chairman of the company.

 

According to analysts, Jain was the CEO at Bajaj Finance for over 15 years and has been instrumental in the success of the NBFC.

 

In case of NBFCs, the appointment of CEO/ MD is decided by Board/ NRC and, unlike banks, they don't need to take specific approvals from the RBI. Given his stature and relationships with stakeholders, they expect this transition to be smooth from a near-term perspective.

 

"While Jain's availability as well as depth of the management team will allow smooth transition in near-term, Bajaj Finance may need to find/ room talent to take up the role as CEO/ MD over the medium-term," said a note by Jefferies.

 

In this backdrop, even though the events count as slightly negative, analysts at the brokerage believe the franchise is on a good footing and can benefit from lower rates, improving asset quality, and an uptick in credit demand going forward.

 

"Given Jain's credentials and investor belief in him, Bajaj Finance shares are likely to see a positive reaction in the immediate term, as he takes over officially as MD, once again. That said, while the near-term management continuity is likely a relief for investors, the management succession plan is back at the table for the Board," said those at Emkay Global Financial Services.

 

Bajaj Finance share price target

Jefferies has a 'Buy' rating on Bajaj Finance shares with a target price of ₹1,044 per share, while Emkay Global has an 'Add' rating and a target price of ₹925.

 

Both the brokerages will revisit their ratings and target prices post the company’s June quarter (Q1Y26) results, scheduled to be released on July 24, 2025.

 

Bajaj Finance Q1 results preview

Kotak Institutional Equities expects Bajaj Finance to report a 19.5 per cent year-on-year (Y-o-Y) jump in net profit, at ₹4,676.2 crore, in Q1FY26. On a quarter-on-quarter (Q-o-Q) basis, this would be a rise of 2.9 per cent.

 

Its net interest income (NII), it said, could surge 21.9 per cent Y-o-Y and 4 per cent Q-o-Q to ₹10,201.1 crore, while pre-provision profit is seen rising 21.2 per cent Y-o-Y and 5.7 per cent Q-o-Q to ₹8,421.5 crore.

 

"Bajaj Finance reported strong AUM growth of 25 per cent Y-o-Y and 5.9 per cent Q-o-Q in Q1FY26. We bake in stable spreads of 8.5 per cent sequentially as the yield pressure on mortgages is offset by lower cost of borrowings. Further, we expect the cost-to-average AUM ratio to remain moderate at 3.8 per cent (3.9 per cent in Q4FY25 and 4.1 per cent in Q1FY25). We expect credit cost of 2.0 per cent for Q1FY26E (2.0-2.3 per cent in the previous four quarters)," the brokerage said.

 

Motilal Oswal Financial Services, meanwhile, projects a net profit growth of 18.3 per cent Y-o-Y and 1.8 per cent Q-o-Q to ₹4,629.7 crore. It pegs NII at ₹10,251.7 crore (up 22.6 per cent Y-o-Y/4.5 per cent Q-o-Q), and PPoP at ₹8,430 crore (up 21.3 per cent Y-o-Y/5.8 per cent Q-o-Q).