Along with one-time joining bonus of Rs 7.35 crore in equity, Anup Bagchi's potential compensation as HDFC Bank CEO in first year could reach Rs 43.24 crore; annual remuneration of Rs 35.9 cr to consist of Rs 8.97 crore as fixed pay and Rs 26.92 cr as performance-linked variable pay.
HDFC Bank’s new boss Anup Bagchi will become India’s highest-paid bank CEO when he assumes charge on 27 October, with an annual compensation package of Rs 35.9 crore.
Along with the one-time joining bonus of Rs 7.35 crore in equity grant vesting over four years, Bagchi's potential compensation in the first year could reach Rs 43.24 crore.
Bagchi’s annual remuneration will consist of a Rs 8.97 crore fixed pay and a performance-linked variable pay of up to Rs 26.92 crore.
The fixed pay will include Rs 3.32 crore basic, Rs 1.6 crore retirals and Rs 3.9 crore allowances and perquisites.
The variable pay, capped at Rs 26.92 crore or 300% of fixed pay, will consist of Rs 8.88 crore cash and Rs 18.04 crore in 7,11,801 stock options, with equity vesting over four years.
The cash component will be split equally between upfront and deferred payments, with Rs 4.44 crore payable upfront and Rs 4.44 crore deferred over a three-year vesting period.
Bagchi, who served in various roles at ICICI Bank group for nearly three decades, will also be provided with up to two company cars — each with an ex-showroom price of up to Rs 1.4 crore — along with a monthly fuel allowance of 700 litres and maintenance expenses reimbursed at actual cost.
Bagchi's compensation package has been approved by the Reserve Bank of India (RBI), but it will still need the nod from shareholders, who will vote in a postal ballot that closes on 6 November.
Bagchi’s proposed package is sharply above his Rs 7.48 crore compensation (excluding the value of stock options granted to him during the year) in FY26 at ICICI Prudential Life Insurance. He is currently the MD & CEO of ICICI Prudential Life.
The package will put Bagchi at the top of the bank CEO pay packs, including that of his predecessor Sashidhar Jagdishan whose remuneration stood at Rs 15.13 crore in FY26, which included a Rs 7.3-crore performance bonus and 4,28,405 stock options. Kotak Mahindra Bank CEO Ashok Vaswani earned Rs 19.34 crore in FY26.
Bagchi, appointed for a three-year term, will replace Sashidhar Jagdishan at a time when HDFC Bank’s stock performance has been dismal and the country’s largest private-sector lender has been facing a slowdown in growth after its merger with former parent HDFC Ltd. The bank has also been under the glare due to governance lapses.
