HDFC Bank CEO Jagdishan’s Pay Rises by 62% in FY23; Attrition Raises Concerns

HDFC Bank’s Managing Director and Chief Executive, Sashidhar Jagdishan, received a considerable increase of over 62% in his remuneration in FY23, reaching ₹10.55 crore. The Deputy Managing Director, Kaizad Bharucha, received an overall remuneration of ₹10.03 crore, excluding stock options.

In FY22, Jagdishan’s remuneration was ₹6.52 crore, while Bharucha received ₹10.64 crore. However, in FY23, Jagdishan’s remuneration surged to ₹10.55 crore, and Bharucha’s remuneration decreased to ₹10.03 crore.The bank’s annual report mentioned that the median remuneration of employees saw a modest increase of 2.51 per cent.

Jagdishan’s remuneration included a basic salary of ₹2.82 crore, allowances and perquisites of ₹3.31 crore, a provident fund of ₹33.92 lakh, and a performance bonus of ₹3.63 crore.Jagdishan also expressed concerns about the bank’s attrition rate, which was at 34.15 per cent in FY23, higher than the industry average of 24.7 per cent.

He attributed the increase in attrition, especially among non-supervisory staff, to post-COVID factors that may have caused younger employees to reassess their priorities.The bank is focusing on building an inclusive organization to address attrition issues and is determined to address any lapses in its defined way of working.

It also aims to increase the share of women in its workforce to 25 per cent by the end of FY25.HDFC Bank has made efforts to improve its resilience and uptime metrics, especially after facing regulatory actions related to technology shortcomings. It plans to add more branches, including units in semi-urban and rural areas, to expand its presence in the coming fiscal year.