New Delhi, August 7, 2023: The fiscal year 2022-23 has seen significant variations in executive compensation within the banking sector of India. Sashidhar Jagdishan, the CEO of HDFC Bank, emerged as the highest-paid banking executive, securing a total compensation of over Rs 10.55 crore. Jagdishan’s colleague and Deputy Managing Director of HDFC Bank, Kaizad Bharucha, earned Rs 10 crore during the same fiscal year, potentially placing him as the second-highest-paid banker in the country, as per the disclosures made in annual reports.
In the realm of other bank CEOs, Amitabh Chaudhry of Axis Bank received the second-highest payout of Rs 9.75 crore, closely trailed by Sandeep Bakhshi of ICICI Bank, who earned Rs 9.60 crore in the fiscal year.
Uday Kotak, who holds over 26 percent of Kotak Mahindra Bank, continued his practice of receiving a token salary of Re 1 as remuneration. He initiated this practice during the pandemic and upheld it during FY23.
Kotak Mahindra Bank stands out in terms of compensation policies, reporting a 16.97 percent increase in the average remuneration for its staff, excluding managerial roles. In comparison, staff at ICICI Bank received an 11 percent hike, while Axis Bank employees enjoyed an above-inflation average increase of 7.6 percent. HDFC Bank reported an average pay hike of 2.51 percent, while Federal Bank, known for having the industry’s lowest attrition rates, provided an average pay hike of only 2.67 percent.
In terms of top management remuneration in relation to median remuneration, Jagdishan led the list, earning 150 times the average salary of an HDFC Bank employee. Bakhshi’s remuneration was 119 times the median salary of Axis Bank employees, and Chaudhry’s compensation was 101 times the median.
According to the annual report, Jagdishan’s compensation package comprised a basic salary of Rs 2.82 crore, allowances and perquisites valued at Rs 3.31 crore, a provident fund contribution of Rs 33.92 lakh, and a performance bonus of Rs 3.63 crore.
Jagdishan’s reported remuneration increased by 62 percent compared to the Rs 6.51 crore he earned in FY22. ICICI Bank’s CEO Bakhshi witnessed a significant uptick of over 35 percent in his overall remuneration, while Chaudhry’s compensation experienced a notable rise of nearly 28 percent.
It’s worth noting that the Reserve Bank of India (RBI) approved wage revisions for the bank’s top management for FY22 post the conclusion of that fiscal year. This implies that the disclosed remunerations for FY23 might encompass arrears from the previous fiscal year. As a result, the reported increases in remuneration for key management personnel could potentially be lower than initially indicated.
