HDFC Bank‘s Managing Director and Chief Executive, Sashidhar Jagdishan, saw a significant increase of more than 62% in his remuneration in FY23, reaching ₹10.55 crore.
According to the bank’s annual report for the same fiscal year, the Deputy Managing Director, Kaizad Bharucha, received an overall remuneration of ₹10.03 crore, excluding stock options, PTI reported.
According to the report, in FY22, Jagdishan’s remuneration stood at ₹6.52 crore, whereas Bharucha received ₹10.64 crore during the same period. However, in FY23, Jagdishan’s remuneration surged to ₹10.55 crore, and Bharucha’s remuneration decreased to ₹10.03 crore. The report also mentioned that the median remuneration of employees saw a modest increase of 2.51 per cent.
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According to the report, the CEO was paid 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.
In the future, the key personnel of HDFC Bank will play a crucial role as they will be responsible for guiding a significantly larger institution following the merger of its parent company, mortgage major HDFC, with HDFC Bank.
In his message to the shareholders, Jagdishan expressed that the merger will enable the bank to increase its involvement in infrastructure projects with the support of a substantially larger balance sheet.
He said, “With its digital platforms, digital journeys and physical branch network, HDFC Bank will have the ability to offer the home loan customer a complete bouquet of the Bank’s and subsidiaries’ products and services.”
“Savings accounts, personal loans, insurance cover, SIPs can all be bundled along with a home loan to create a compelling value proposition to the customer, that probably does not exist in the market at the scale at which this is envisaged,” Jagdishan said.
Meanwhile, he expressed concerns over the attrition rate at the bank, which had over 1.70 lakh employees at the end of March 2023.
PTI further reported that the bank’s attrition rate was at 34.15 per cent in FY23, as against an industry average of 24.7 per cent. A total of 53,760 employees quit the bank in FY23, while 85,814 were added.
“The bank has experienced an increase in attrition over the last financial year and a significant part of which was in the ‘non-supervisory staff’ levels (which includes sales officers),” Jagdishan said, attributing the same to a post-COVID phenomenon, which may have prompted the younger workforce to recalibrate what they ‘want from their lives’.
Also Read: HDFC twins merger: Income tax implications that HDFC Bank shareholders should know
Jagdishan said he wants to focus on building an inclusive organisation, which will go a long way in reining in attrition in the coming years and also seemed to be referring to lapses on the cultural front like the unsavoury conduct of a senior manager during a business review meeting recently.
“I am fully conscious of the fact that there may be instances where some people managers might transgress our defined way of working. We have the resolve to nip this in the bud, both by way of training/counselling and appropriate action, to ensure that the same is not attempted by anyone else. Having said that, we have some distance to traverse on this front,” he said.
Jagdishan said the bank is focusing on diversity, and plans to take the overall share of women in its workforce to 25 per cent by end of FY25 from the current 23 per cent.
The bank, which had invited unprecedented regulatory actions due to laxities on the technology front, has seen a significant improvement in its resilience and uptime metrics, Jagdishan said.
It has migrated data centres to new state-of-the-art facilities in Mumbai and Bengaluru. The trend in complaints indicates that digital frauds are increasing, particularly targeting a vulnerable section of consumers, he said.
It plans to add another 1,500 to 2,000 branches in FY24, which will include 575 units in semi-urban and rural areas, he further said.
(With inputs from PTI)
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