Key takeaways:
- Anup Bagchi’s proposed annual pay package at HDFC Bank totals ₹35.9 crore.
- Performance-linked pay accounts for ₹26.92 crore of Bagchi’s proposed compensation.
- Bagchi will become HDFC Bank’s managing director and CEO on October 27.
HDFC Bank’s incoming Managing Director and Chief Executive Officer, Anup Bagchi, has a proposed annual compensation package of ₹35.9 crore, including employee stock options (ESOPs). The package is more than double the FY26 remuneration reported for several chief executives at major private sector banks. The Reserve Bank of India (RBI) has approved the proposal, which now requires shareholder approval.
Bagchi’s proposed pay exceeds compensation at peer banks
According to HDFC Bank’s postal ballot notice, Bagchi’s proposed annual package includes fixed remuneration of ₹8.97 crore and performance-linked variable pay of up to ₹26.92 crore. The total includes ESOPs worth ₹18.04 crore. Even without these stock options, his proposed annual compensation would stand at ₹17.85 crore.
For comparison, Kotak Mahindra Bank’s Managing Director and CEO Ashok Vaswani received ₹17.24 crore in FY26. HDFC Bank Deputy Managing Director Kaizad Bharucha earned ₹17.14 crore, while outgoing HDFC Bank chief Sashidhar Jagdishan received ₹15.12 crore.
At other major private sector banks, ICICI Bank Managing Director and CEO Sandeep Bakhshi received ₹10.62 crore, while Axis Bank Managing Director and CEO Amitabh Chaudhry earned ₹10.3 crore during FY26.
Bagchi’s proposed fixed annual remuneration includes a salary of ₹3.32 crore, housing allowance or accommodation benefits worth ₹1.66 crore, fixed allowances of ₹1.09 crore, and conveyance benefits of ₹54 lakh. The package also covers provident fund contributions, gratuity, pension, superannuation benefits, and other perquisites.
The variable component will depend on performance assessments and regulatory requirements. Of the proposed ₹26.92 crore, ₹8.88 crore will be paid in cash and ₹18.04 crore through ESOPs. The cash portion will be split equally between upfront and deferred payments, with the deferred amount spread over three years.
The bank has proposed granting 7,11,801 stock options worth approximately ₹18.04 crore. These options will vest over four years.
Joining bonus and benefits form part of the package
In addition to his annual compensation, Bagchi will receive a one-time joining bonus worth approximately ₹7.35 crore in share-linked instruments. This includes restricted stock units valued at ₹3.19 crore and stock options worth ₹4.16 crore. Both components will follow a four-year vesting schedule.
His benefits will also include access to up to two company cars, with a combined ex-showroom price limit of ₹1.4 crore, along with fuel and maintenance support. The package provides a housing loan facility of ₹3.75 crore at concessional interest rates, as well as medical and personal accident insurance.
HDFC Bank has stated that variable pay could reach 300% of fixed remuneration, subject to performance assessment and regulatory approval. Under the proposed structure, variable pay makes up about 75% of the total annual compensation.
Bagchi is scheduled to take charge as managing director and CEO on October 27 for a three-year term ending October 26, 2029. He will succeed Jagdishan, whose tenure ends on October 26.
Anup Bagchi has more than three decades of experience in financial services and has been associated with the ICICI Group since 1992. He previously served as an executive director at ICICI Bank and as managing director and CEO of ICICI Securities. He currently heads ICICI Life Insurance.
