Mumbai: HDFC Bank on Friday said that it gave a 32% salary hike to its managing director and chief executive officer, Aditya Puri, during financial year 2015-16. After the hike, Puri’s annual remuneration increased to Rs.9.73 crore during the year ended 31 March 2016, from Rs.7.4 crore a year ago, according to the annual report that the bank put up on its website.
The bank’s executive director, Kayezad Bharucha, saw his annual salary package increase to Rs. 3.46 crore, a hike of nearly 40% from Rs.2.48 crore last year.
Deputy managing director, Paresh Sukthankar, however, saw a marginal dip in his salary package, which dropped to Rs.5.14 crore, as compared with Rs.5.2 crore a year ago.
According to information provided in the annual report, the ratio of remuneration of the managing director to that of the average employee is 179:1 during financial year 2015-16. This ratio increased from 117:1 in the previous year. The average increase in employee remuneration for the year has been 10.88%, as compared with 9.38% a year ago.
HDFC Bank, during the last financial year, reported a net profit of Rs.12,296.2 crore, up 20.4% from a year ago. Net revenue for the year was reported at Rs.38,343.2 crore, up 22.1% over Rs.31,392.0 crore last year.
India’s largest private sector lender, ICICI Bank, earlier this month reported in its annual report that it had given a 15% pay hike to managing director and CEO Chanda Kochhar. According to the annual report, Kochhar’s annual basic salary increased to Rs.2.3 crore in financial year 2015-16, from Rs.2 crore a year ago. Similarly, senior executives Rajiv Sabharwal, K. Ramkumar and N.S. Kannan too saw a 15% increase in their basic salaries.
However, Kochhar’s total annual salary dropped to Rs.4.8 crore from Rs.5.8 crore a year ago.
The drop in total salaries of ICICI Bank’s top management was because they did not take a performance bonus during the year, after the bank reported a massive fall in profit in the January-March quarter owing to weak asset quality.