HDFC Bank’s Managing Director and Chief Executive Officer (MD&CEO) Sashidhar Jagdishan took home an annual package of Rs 10.5 crore in the financial year 2022-2023, according to the annual report of the bank released on July 19. In FY22, Jagdishan had earned an annual salary of Rs 6.51 crore.
Jagdishan’s package included a basic salary of Rs 2.82 crore, allowances and perquisites of Rs 3.3 crore and a performance bonus of Rs 3.63 crore among other components, according to the annual report.
As against this, HDFC Bank’s Executive Director Kaizad Bharucha received an annual compensation of Rs 10 crore that included a basic salary of Rs 2.7 crore, allowances and perquisites of Rs 4.3 crore and a performance bonus of Rs 2.2 crore.
Both Jagdishan and Bahrucha received payments that also include the component received as part of the deferred cash variable of previous years.
As a point of comparison, State Bank of India (SBI) Chairman Dinesh Khara took home Rs 37 lakh in the fiscal year 2022-2023 marking a jump of around 7.5 percent from the previous year, according to the bank’s annual report. SBI is India's largest bank by assets.
Khara’s salary included Rs 27 lakh basic pay and Rs 9.99 lakh dearness allowance. In the previous fiscal year, Khara earned Rs 34.42 lakh in annual salary for the financial year ending 2021-22 (FY22), 13.4 percent higher than what his predecessor Rajnish Kumar drew during FY21.
In the case of Kotak Mahindra Bank, Managing Director and CEO Uday Kotak opted to forego his fixed salary and accepted a token salary of Rs 1 for the financial year 2022-23, the annual report of the bank showed, Moneycontrol reported on July 15.
Dipak Gupta, Joint Managing Director, got an annual compensation of Rs 5.43 crore, the report showed. Gupta's total package included a basic salary of Rs 2.74 crore and an annual incentive of Rs 1.18 crore. Other whole-time directors KVS Manian, Gaurang Shah and Shanti Ekambaram got total packages of Rs 5.3 crore, Rs 5.03 crore and Rs 2.02 crore, respectively.
These amounts exclude gratuity, value of car perquisites under the Income Tax Act, 1961 and perquisites value on ESOPs, according to the report.
In FY22, Axis Bank managing director and chief executive officer Amitabh Chaudhry drew a total of Rs 7.62 crore in annual salary, as per the bank’s FY22 annual report.
Chaudhry was also separately granted a total of 412,938 stock options of Axis Bank during FY22, on the basis of approval received from the Reserve Bank of India (RBI), the Axis Bank annual report said. The stock options were granted at Rs 726.25 per share. The FY23 numbers aren’t out yet.
There has been a long-standing debate on the salary disparity between top bankers in public sector and private sector banks. Typically, top executives at private sector banks get far higher annual compensation compared with that of state-run banks.
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