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Anup Bagchi is poised to become India’s highest-paid bank CEO, with HDFC Bank proposing a staggering ₹35.9 crore annual compensation package that includes substantial variable pay and a one-time joining bonus.
IMAGE: Anup Bagchi. Photograph: ANI Digital/X
Key Points
- Anup Bagchi is slated to become India’s highest-paid bank CEO with a target annual compensation of approximately ₹35.9 crore at HDFC Bank.
- His package includes ₹8.97 crore in fixed remuneration and ₹26.92 crore in target variable pay for the 2026-27 performance year.
- Bagchi will also receive a one-time joining bonus of about ₹7.35 crore in share-linked instruments, vesting over four years.
- The proposed compensation significantly surpasses the remuneration of other large private-sector bank heads, including outgoing HDFC Bank MD & CEO Sashidhar Jagdishan.
- Bagchi’s appointment as HDFC Bank’s MD & CEO is for a three-year term, commencing on October 27.
Anup Bagchi, who is to take charge as HDFC Bank’s managing director and chief executive officer (MD & CEO) later this month, is poised to become India’s highest-paid bank CEO, with the lender proposing a target annual compensation package of Rs 35.9 crore.
Details of the Compensation Package
The package, detailed in HDFC Bank’s postal ballot notice, comprises fixed remuneration of Rs 8.97 crore and target variable pay of Rs 26.92 crore for the 2026-27 performance year.
The variable component, equivalent to 300 per cent of his fixed remuneration, accounts for nearly 75 per cent of his total target compensation.
Separately, Bagchi will receive a one-time joining bonus worth around Rs 7.35 crore in the form of share-linked instruments.
The joining award will vest over four years and is separate from his annual target compensation.
Bagchi’s fixed remuneration includes an annual salary of Rs 3.32 crore, with the balance comprising allowances and perquisites, retirement benefits, and other benefits.
The bank has also provided for 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.
Variable Pay Structure and Approvals
The variable pay will comprise Rs 8.88 crore in cash and Rs 18.04 crore in share-linked instruments.
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.
The actual variable payout, however, will depend on Bagchi’s performance and will be subject to the approval of HDFC Bank’s Governance, Nomination and Remuneration Committee, the board, and the Reserve Bank of India (RBI), as applicable.
Comparison with Other Bank CEOs
The proposed package puts Bagchi’s target annual compensation well above the remuneration reported by the heads of other large private-sector banks in financial year 2025-26 (FY26).
HDFC Bank’s outgoing MD & CEO, Sashidhar Jagdishan, received a total remuneration of Rs 28.65 crore in FY26, including gross salary of Rs 14.71 crore and stock-option benefits of Rs 13.53 crore, according to the bank’s statutory annual return.
Deputy Managing Director Kaizad Bharucha received Rs 26.32 crore, including gross salary of Rs 16.69 crore and stock-option benefits of Rs 9.17 crore.
On a cash and other remuneration basis, Jagdishan received Rs 15.13 crore in FY26. ICICI Bank MD & CEO Sandeep Bakhshi received around Rs 10.6 crore, while Kotak Mahindra Bank MD & CEO Ashok Vaswani received around Rs 17.2 crore during the year.
In FY26, Bagchi received Rs 7.48 crore in remuneration from ICICI Prudential Life Insurance, excluding the value of stock options granted to him during the year. He is currently the MD & CEO of ICICI Prudential Life.
Appointment Details
Bagchi is scheduled to take charge as HDFC Bank’s MD & CEO on October 27, succeeding Jagdishan. His appointment is for a three-year term.
