Bajirao (1700-1740), was Peshwa (Prime Minister) to the Maratha Maharaja Shahu . He succeeded his father Balaji Vishwanath as Peshwa. Noted for bravery and intelligence, Bajirao extended the Maratha empire northward. He fought 36 battles, and never tasted defeat. He moved to the city of Pune and built a palace called Shaniwarwada; its ruins still stand testimony to Maratha imperial glory. He controlled the Nizam and the Moguls and also kept the Portuguese at bay. With his brother Chimnaji Appa , and handpicked ministers and warriors, Bajirao took the Maratha Empire to its zenith.

Bajirao was said to have told his brother Chimnaji, "Remember that night has nothing to do with sleep. It was created by God, to raid territory held by your enemy. The night is your shield, your screen against the cannons and swords of vastly superior enemy forces."

Bajirao recruited and groomed commonfolk into brave soldiers and excellent generals. The Scindias (Ranoji) of Gwalior, Holkars (Malharrao) of Indore, Gaekwads (Pilaji) of Baroda, and Ponwars (Udaiji) of Dhar were his creation.

Bajirao's love affair with Mastani is famous. Mastani, said to be fair and lovely, was the daughter of Rana Chattrasal of Bundelkhand by his Muslim mistress. Mastani lived with Bajirao at Shaniwarwada and rode beside him on his numerous military campaigns. She was his inspiration in battle and chose to perish in his funeral pyre. Mastani was also the single biggest complication in Bajirao's personal life. Their love affair caused much rift in the orthodox Pune society of the time and lead to major crisis within the Peshwa family.

Bajirao ardently desired that his son by Mastani be invested with the sacred thread and be declared a brahmin. But even the powerful Bajirao could not get the orthodox Pune brahmin priests to agree. With a heavy heart he had to bring up the lad as a Muslim. Named Shamsher Bahadur , Bajirao and Mastani's son died at age 27 in the Third Battle of Panipat. Shamsher Bahadur's son, Ali Bahadur ruled over Bajirao's lands in Bundelkhand, and founded the state of Banda, UP.

Bajirao's administrative and organizational skills are also worth noting as a prime stimulus to the banking business in his days.