HDFC Bank's Anup Bagchi set for ₹36-crore annual pay, ₹7.35-cr joining bonus; Here's his salary breakdown

HDFC Bank's incoming MD and CEO Anup Bagchi is set to receive an annual compensation of up to ₹35.9 crore, including performance-linked variable pay and share-based incentives.

The remuneration package comprises annual fixed pay of ₹8.97 crore and variable pay of up to ₹26.92 crore for the 2026-27 performance year, taking the total potential annual compensation to ₹35.89 crore.

The variable component, which is subject to performance, includes cash payments of ₹8.88 crore and employee stock options valued at ₹18.04 crore.

The bank has proposed that 50% of the cash component be paid upfront, with the remaining half deferred over three years.

The share-linked incentives will vest over four years, with 25% scheduled to vest at the end of each of the first three years and the balance in the fourth year.

The annual compensation is much higher than the ₹17.23 crore remuneration received by Kotak Mahindra Bank CEO Ashok Vaswani in FY26 and ₹10.30 crore received by Axis Bank MD and CEO Amitabh Chaudhry.

HDFC Bank’s outgoing CEO Sashidhar Jagdishan had drawn compensation of ₹28.65 crore, including stock options, in FY26.

Bagchi will also be eligible for a one-time joining bonus comprising restricted stock units (RSUs) valued at ₹3.19 crore and employee stock options worth ₹4.16 crore, which will vest over four years.

The fixed-pay component includes an annual salary of ₹3.32 crore, provident fund contribution of ₹39.82 lakh, gratuity of ₹21.38 lakh, pension or National Pension System benefits of ₹46.46 lakh and superannuation benefits of ₹49.78 lakh.

It also includes leave travel allowance of ₹55.31 lakh and other fixed allowances of ₹1.09 crore.

Bagchi will be entitled to housing benefits worth ₹1.66 crore annually and a conveyance allowance or use of the bank's car valued at ₹54 lakh.

The package also provides for club memberships, a housing loan benefit and medical and personal accident insurance.

The bank has said the proposed variable pay is calculated at 300% of fixed pay and is subject to the assessment of actual performance, as well as approvals from the bank's Governance, Nomination and Remuneration Committee, board and the Reserve Bank of India.

The remuneration structure and appointment have been placed before shareholders for approval through a postal ballot.

The voting process began on October 8 and will close on November 6.

The RBI has approved Bagchi's appointment as HDFC Bank's MD and CEO for three years from October 27, 2026, to October 26, 2029.

He will succeed Sashidhar Jagdishan, whose tenure ends on October 26.

Bagchi, who joined the ICICI Group in 1992, is currently managing director and CEO of ICICI Prudential Life Insurance. He previously served as an executive director at ICICI Bank from 2017 to 2023 and headed ICICI Securities.

Under his leadership, ICICI Prudential Life's annualised premium equivalent crossed ₹10,000 crore for the first time in FY25, rising 15% year-on-year to ₹10,407 crore. Its profit after tax increased nearly 40% to ₹1,189 crore.

Bagchi holds a management degree from the Indian Institute of Management, Bangalore, and an engineering degree from the Indian Institute of Technology, Kanpur.