Bajaj Finance Shares Rise As Market Remains Stable Amid Sudden MD Exit

Bajaj Finance Ltd.'s shares edged up 1.43% on Tuesday, defying concerns over a sudden leadership change that saw Managing Director Anup Kumar Saha resign just four months into his tenure. The stock’s gain action comes after the company’s decision to reinstate veteran leader Rajeev Jain as Vice Chairman and MD, a move widely seen as stabilising in the near term.

Saha’s resignation, tendered on Monday citing personal reasons, comes amid speculation that he is among the top contenders for the MD and CEO role at IndusInd Bank. His exit marks an abrupt end to Bajaj Finance’s internal succession plan, as Saha had been groomed for leadership over seven years before assuming the MD role in April 2025.

Despite the unexpected departure, brokerages largely view the situation as manageable due to Jain’s return. Jefferies called the resignation “a surprise” but maintained its bullish stance, reiterating a ‘Buy’ rating with a target price of Rs 1,044. The firm emphasised that Jain’s deep experience and the strength of the senior management team would help ensure a smooth transition, though it flagged succession planning as a medium-term challenge.

CLSA echoed this sentiment, describing the leadership shift as “neutral to positive” for Bajaj Finance. It also noted that Saha’s potential move to IndusInd Bank could be interpreted positively for that institution, suggesting investors may draw favorable connections between the two developments. Morgan Stanley retained its ‘Overweight’ rating with a target of Rs 1,050, acknowledging the resignation as a setback to succession efforts but asserting that the issue remains under control.

The Reserve Bank of India had earlier directed IndusInd Bank to submit its CEO recommendations by June 30, adding weight to speculation around Saha’s candidacy.