Anup Bagchi set to become India's highest-paid bank CEO with HDFC Bank package

HDFC Bank has proposed an annual compensation package of up to Rs 35.90 crore for its incoming boss Anup Bagchi, a move that is set to make him the highest-paid bank chief in India.

The country's largest private sector lender has put the proposal to shareholders for approval via a postal ballot, with electronic voting open until 6 November. The Reserve Bank of India has already approved Bagchi's appointment and remuneration.

Bagchi, 56, is scheduled to take over as managing director and chief executive on 27 October for a three-year term. He succeeds Sashidhar Jagdishan at a time when the bank is working to revive retail loan growth, improve margins, and settle investor nerves following its massive merger with its parent company.

How the pay package breaks down

Bagchi’s annual package comprises Rs 8.97 crore in fixed pay and up to Rs 26.92 crore in performance-linked variable pay, which is capped at three times his fixed salary.

His fixed compensation includes:

• A basic salary of Rs 3.32 crore.
• Housing benefits of Rs 1.66 crore.
• A car allowance of Rs 54 lakh, alongside other retirement benefits and perquisites.

The variable pay is split between cash and stock. HDFC Bank plans to pay Rs 8.88 crore in cash—with half of that deferred over three years—and award Rs 18.04 crore in employee stock options (ESOPs) that will vest over four years.

On top of the annual salary, the bank has approved a one-time joining bonus of Rs 7.35 crore in stock-linked incentives. This includes restricted stock units worth Rs 3.19 crore and ESOPs valued at Rs 4.16 crore, bringing his potential first-year compensation to Rs 43.24 crore.

How it compares to other bank chiefs

The proposed package represents a roughly 90 per cent jump from Bagchi's previous compensation at ICICI Prudential Life Insurance, where his FY26 package was estimated at Rs 18.9 crore including stock options.

It also places him ahead of his predecessor and rivals in the private banking sector:

• Sashidhar Jagdishan (Outgoing HDFC Bank CEO): Received Rs 28.65 crore in FY26, comprising a gross salary of Rs 14.71 crore and stock option benefits of Rs 13.53 crore.
• Kaizad Bharucha (HDFC Bank Deputy MD): Received Rs 26.32 crore in FY26.
• Ashok Vaswani (Kotak Mahindra Bank CEO): Earned Rs 17.24 crore in FY26.
• Sandeep Bakhshi (ICICI Bank CEO): Received around Rs 10.64 crore in FY26.

The bank points out that stock-option benefits for existing executives are measured differently from the grant-date valuations used for Bagchi's proposed package.

What lies ahead for Bagchi

Bagchi steps into the top job during a critical transition phase for HDFC Bank. Following its merger with Housing Development Finance Corporation, the lender has faced challenges in integrating operations, managing margins, and maintaining its historical pace of retail loan growth. Shareholders will vote on the pay proposal and his formal appointment through the ongoing postal ballot.