Directors at IndusInd Bank pocketed sharply higher payouts in FY25, thanks to a spike in board and committee meetings that followed the lender's disclosure of irregularities in its derivatives book, the Economic Times (ET) reported.
According to the bank's FY25 annual report cited by ET, Chairman Sunil Mehta's sitting fee more than doubled to Rs 96.25 lakh from Rs 47.95 lakh in the previous year. This was in addition to his fixed remuneration of Rs 30 lakh, which remained unchanged. Mehta's three-year term runs until January 30, 2026.
People aware of the matter told ET that between March and August 2025, the board is estimated to have met 180-200 times-far more than during the same period last year. Several long sessions were also logged as new meetings instead of continuations, inflating payouts, the report noted.
Other directors also saw substantial jumps, according to ET. Board member Pradeep Udhas, senior advisor at KPMG, earned Rs 84 lakh in sitting fees in FY25-over three times the Rs 25.20 lakh he received in FY24. Bhavna Doshi, a former KPMG advisor, collected Rs 74.75 lakh, a 79% increase from the previous year's Rs 41.65 lakh.
Responding to ET's queries, IndusInd Bank said the board had acted to safeguard the interests of the bank and its stakeholders amid "extraordinary and unusual" circumstances after the March 10 disclosures. "Following the exit of most of the designated key managerial personnel, the operations of the bank were actively overseen by an oversight committee of the board, as directed by the regulator," the lender said.
The bank further told ET that all payments were "well within the existing shareholder-approved limits and regulatory norms" and rejected allegations of impropriety as "repugnant, ill-informed and baseless."
As per the bank's policy, directors are entitled to Rs 1 lakh per board meeting and Rs 75,000 per committee meeting, ET reported. In FY25, Akila Krishnakumar, former India head of SunGard, earned Rs 66.50 lakh in sitting fees-a 64% increase from Rs 40.6 lakh in FY24. Rajiv Agarwal's payout rose 70% to Rs 60.25 lakh, while Jayant Deshmukh earned Rs 45 lakh, up from Rs 25.2 lakh a year earlier.
Rakesh Bhatia, who joined the board in FY25, took home Rs 90 lakh, placing him among the top-paid directors in terms of meeting fees, while Sudip Basu received Rs 62.25 lakh.
The ET report highlighted that the total number of board meetings rose to 31 in FY25, compared with 21 in FY24. Audit committee meetings increased to 30 from 25, compensation committee sessions climbed to 15 from 12, and the risk management committee saw the sharpest rise, holding 14 meetings versus just five the year before.
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