Mumbai: Can you guess what’s the annual package of HDFC Bank’s managing director and chief executive, Sashidhar Jagdishan? ₹2 crore per or ₹5 crore? You are grossly mistaken if you think so. Jagdishan is drawing about ₹10.55 crore per annum, and thus emerged as the highest paid bank chief executive for the fiscal 2023, with a significant increase of more than 62% in his remuneration vis-a-vis last year’s drawing.
Reports said that Kaizad Bharucha, the deputy managing director of India’s largest private sector bank (HDFC Bank) by assets and world’s fourth largest bank by market capitalisation as of July 2023, drew ₹10.03 crore for the FY 2023. Bharucha is likely to be the second-highest grossing banker in the country, according to according to the bank’s annual report for FY23.
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Axis Bank’s CEO Amitabh Chaudhry is the second highest-paid banker, with ₹9.75 crore as payout in FY23. Chaudhry was closely followed by Sandeep Bakhshi of ICICI Bank, who drew ₹9.60 crore for the fiscal year.
Uday Kotak, who holds over 26% of Kotak Mahindra Bank, takes a token ₹1 as remuneration in FY23. The billionaire banker had taken a decision to take a token ₹1 as remuneration in the start of the pandemic. The Kotak Mahindra Bank reportedly gave a 16.97% increase in the average remuneration to its staffers excluding the managerial talent, when the sector is grappling with the attrition problem.
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Employees at ICICI Bank were given an 11% hike, the Axis Bank gave an average hike of 7.6%. The HDFC Bank annual report also mentioned that the median remuneration of employees saw a modest increase of 2.51% in FY23. Interestingly, the Kochi based Federal Bank having the lowest attrition rates in the industry reported an average pay hike of only 2.67% in FY23.
When we compare the top management’s median remuneration, Sashidhar Jagdishan of HDFC Bank topped the list, drawing 150 times the average HDFC Bank employee, he was followed by Sandeep Bakhshi of ICICI Bank at 119 times and Amitabh Chaudhry of Axis Bank at 101 times the median salary of staffers at Axis Bank.
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According to the annual report, the HDFC Bank CEO was paid a basic salary of ₹2.82 crore, allowances and perquisites of ₹3.31 crore, a provident fund of ₹33.92 lakh and a performance bonus of ₹3.63 crore. The remuneration for Jagdishan grew by 62% over the ₹6.51 crore in remuneration he had drawn in FY22.
The ICICI Bank CEO Bakhshi’s overall remuneration was increased by over 35%, while the same for Amitabh Chaudhry was nearly 28% higher.
