Kaizad Bharucha, the deputy managing director of the largest private sector banking, earned Rs 10 crore for the fiscal year and may rank as the second-highest earning banker in the nation, according to disclosures made in annual reports.
Sashidhar Jagdishan, the CEO of HDFC Bank, earned approximately Rs 10.55 crore in total compensation in FY23, making him the highest-paid bank CEO.
According to disclosures made in annual reports, Jagdishan’s coworker Kaizad Bharucha, the deputy managing director of the largest private sector banking, earned Rs 10 crore for the fiscal year and may rank as the second-highest earning banker in the nation.
Amitabh Chaudhry, the CEO of Axis Bank, received the second-highest compensation among bank CEOs, amounting to Rs 9.75 crore. Sandeep Bakhshi, the CEO of ICICI Bank, a larger rival, received Rs 9.60 crore for the fiscal year.
Even in FY23, Uday Kotak, who owns more than 26% of Kotak Mahindra Bank, maintained his choice to accept a meager Re 1 in compensation for the pandemic.
Kotak Mahindra Bank shone out on the compensation front when the banking industry struggled with the attrition issue, posting a 16.97% increase in the average pay for its employees, excluding managerial skills.
ICICI Bank employees received an average raise of 11%, while Axis Bank employees received a rise that was more than inflation on average (7.6%). The average pay increase, according to HDFC Bank, was 2.51 percent. Interestingly, Federal Bank, situated in the south and with one of the lowest attrition rates in the sector, only recorded an average salary increase of 2.67 percent.
When comparing the top management’s pay to the median income, Jagdishan came out on top, earning 150 times what the typical HDFC Bank employee makes. Bakhshi and Chaudhry were next, each earning 119 and 101 times the median wage at Axis Bank, respectively.
According to its annual report, Jagdishan’s compensation package includes a base salary of Rs 2.82 crore, allowances and perquisites worth Rs 3.31 crore, a provident fund worth Rs 33.92 lakh, and a performance incentive worth Rs 3.63 crore.
In terms of a percentage increase, Jagdishan’s reported compensation increased by 62% over the Rs 6.51 crore in compensation he received in FY22.
The total compensation for ICICI Bank CEO Bakhshi was almost 35% more, while Chaudhry’s was only about 28% higher.
It should be noted that there have been instances in which the RBI authorized the top management salary adjustments for FY22 after the year had ended, and the compensation reported in FY23 may have included the arrears from the previous fiscal year. The wage increases banks have declared for their key management people could be less.
