How Much Does HDFC Bank’s New CEO Earn?
A photo of HDFC Bank CEO designate Sashidhar Jagdishan. (Source: HDFC Bank)

How Much Does HDFC Bank’s New CEO Earn?

HDFC Bank Ltd.’s annual report for 2020-21 is the first from the lender not signed-off on by longtime chief executive Aditya Puri, who stepped down during the course of the year. Puri, though, got pride of place in this document too with a note of “Thank You” to kick off the report.

From here on, it’s over to Sashidhar Jagdishan.

How much is Jagdishan getting paid to run the country’s largest private bank?

The annual report doesn’t clearly disclose this since Jagdishan took over mid-year but a rough back-of-the-envelope calculation suggests he’s taking home a little more than Rs 7 crore for the top job in banking.

Jagdishan’s gross salary in FY20 was reported at Rs 2.9 crore.

The FY21 annual report discloses that he got a 6.6% hike in FY21 in his previous role as group head of the bank. That would take his salary in his previous role to Rs 3.09 crore.

For FY21, the annual report discloses that the payout to Jagdishan was at Rs 4.77 crore during the year. This includes theseven months for which he was group head, where he would have been paid out Rs 1.8 crore. The earnings of Rs 2.97 crore for the remaining five months as chief executive peg his salary at about Rs 7.13 crore.

The gross salary doesn’t include any stock options and bonuses that may be due to Jagdishan in his previous and current roles.

The ratio of Jagdishan’s salary to the median salary at the bank stands at 138:1, the annual report discloses.

Aditya Puri's FY20 Salary Hike Awaits Approval

The annual report also discloses the proposed salary hikes for Aditya Puri and Executive Director Kaizad Barucha for FY21 are awaiting RBI approval.

The bank’s previous annual report had shown that Puri’s salary rose to Rs 15.92 crore in FY20 compared to Rs 10.73 crore in FY19 and Rs 7.62 crore in FY18. With perquisites, gross salary rose to Rs 18.12 crore from Rs 13 crore last year and Rs 9 crore a year before.

The remuneration tables in the annual report suggest a 39% increase in gross salary. Although, in another section of the annual report, the increase in salary had been listed as 20%.

That hike is pending approval.

The ratio of Puri’s salary to the median salary across the bank was 282:1, as disclosed by the lender last year.

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