- Anup Bagchi will become HDFC Bank's CEO at the end of October with $3.7 million pay.
- His pay includes Rs 8.9 crore fixed and up to Rs 26.9 crore performance-based payout.
- A one-time joining bonus of Rs 7.35 crore in stock units and options is proposed.
Anup Bagchi is poised to become India's highest-paid bank chief when he takes over as HDFC Bank's chief executive officer at the end of October, with a proposed annual compensation package of about $3.7 million, according to a report.
Bagchi, a seasoned banker who spent close to 30 years with the ICICI group, will succeed Sashidhar Jagdishan as the head of HDFC Bank, India's largest private-sector lender. His appointment is among the most closely watched leadership changes in the country's banking sector.
Bagchi's proposed pay package includes an annual fixed component of Rs 8.9 crore, with an additional performance-based payout of as much as Rs 26.9 crore. Of the variable component, Rs 8.88 crore would be paid in cash, while Rs 18.04 crore would be linked to shares and other stock-based instruments, according to regulatory disclosures cited by Reuters.
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HDFC Bank has also proposed a one-time joining bonus of Rs 7.35 crore for Bagchi in the form of restricted stock units and stock options. Including this bonus, his total potential compensation in the first year could reach around Rs 43.24 crore, Reuters reported.
The Reserve Bank of India has approved Bagchi's remuneration package. However, the proposal still requires shareholder approval, with the postal ballot scheduled to close on November 6, the report stated.
The proposed package places Bagchi ahead of the CEOs of other major Indian lenders. It is also significantly higher than the Rs 15.13-crore remuneration received by his predecessor Jagdishan. Kotak Mahindra Bank CEO Ashok Vaswani received Rs 19.34 crore. However, Bagchi's actual compensation could vary depending on his performance, as a substantial portion of the package is linked to performance and stock-based awards, the report added.
Bagchi will take charge as HDFC Bank faces heightened scrutiny over governance issues and a moderation in growth following its merger with mortgage lender Housing Development Finance Corp.
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