BizXtraz!

HDFC BANK'S ADITHYA PURI IS
STILL HIGHEST-PAID INDIAN
BANK CEO

HDFC Bank’s managing director,Aditya Puri, continues to remain
the highest paid banking chief in the country, despite taking a lower increment than some
counterparts during 2012-13.
Puri has been leading the country’s second largest private bank since 1994. He earned Rs.5.02 crore in FY13, 2.4 per cent more from a year earlier.
ICICI Bank’s managing director and chief executive, Chanda
Kochhar, earned Rs 4.1 crore.
Axis Bank’s MD & CEO, Shikha Sharma, received Rs 3.41 crore.
Kochhar got 8.7 per cent more pay and Sharma’s income
increased by 14 per cent in 2012-13.
The remunerations mentioned included basic pay, performance bonus, allowance and perquisites, plus retirement benefits such as contribution to provident fund, gratuity and superannuation fund. Typically,the performance bonus accrued during a financial year is paid in the next year.
In the Reserve Bank of India’s (RBI) guideline of January 2012,
the performance bonus of private banks’ chiefs is capped at 70 per cent of their fixed pay.
Also, if the amount of
performance bonus is more than 50 per cent of the CEO’s fixed
pay, the payment needs to be spread over a period of time.
So, while the performance bonus
accrued to Kochhar in 2011-12 was Rs 1.3 crore, she was paid
only 60 per cent of that or Rs.0.78 crore in 2012-13.
Similarly, Puri got Rs 1.24 crore and Sharma Rs 0.38 crore as
performance bonus in FY13.

Earnings According to sector analysts, the
top private banks have performed better than state-run
rivals in the past few years and improved their profitability
despite an uncertain macro-economic environment.
In 2012-13, ICICI Bank’s standalone net profit increased by 29 per cent, HDFC Bank’s by 30 per cent and Axis Bank’s by 22
per cent.
This and the growth in businesses have allowed private lenders to reward their CEOs with higher remuneration, they said.