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SBI chief Bhattacharya earned Rs 2.37 cr less than ICICI Bank chief in FY17

While Chanda Kochhar got a pay of Rs 2.66 crore, Arundhati Bhattacharya took home only Rs 28.96 lakh

Press Trust of India  |  New Delhi 

Arundhati Bhattacharya, SBI
Arundhati Bhattacharya, Chairman, SBI. Photo: Kamlesh Pednekar

SBI, one of the world's 50 largest banks, pays only a small fraction to its top management as compared to private sector players like Bank and HDFC Bank.

Former RBI governor Raghuram Rajan had flagged the low remuneration issue last August saying it makes difficult for state-owned to "attract top talent, especially a lateral entry".

SBI Chairman took home Rs 28.96 lakh last fiscal, which is pittance when compared to remuneration of her counterparts in private receive, according to analysis of annual reports of various

In comparison, Bank MD and CEO received a basic salary of Rs 2.66 crore last fiscal besides Rs 2.2 crore performance bonus to be paid over the next few years. In addition, she received allowances and perquisites of over Rs 2.43 crore.

The total compensation received by Kochhar in FY17 stood at Rs 6.09 crore.

Similarly, Shikha Sharma, MD and CEO of Bank, took home a basic salary of Rs 2.7 crore, and Rs 1.35 crore as variable pay, besides host of perks and allowances like Rs 90 lakh HRA.

Yes Bank MD and CEO Rana Kapoor, who also happens to be promoter of the bank, took home Rs 6.8 crore as salary in 2016-17.

HDFC Bank's Managing Director Aditya Puri saw his remuneration rise marginally to Rs 10 crore and exercised stock options worth over Rs 57 crore during the last fiscal.

Speaking about public sector at a banking conference in Mumbai, Rajan had said state-owned tended to overpay at the bottom but underpay their top executives.

He jokingly said he himself was underpaid and the disparity made it harder to attract talent from outside at the top level in public sector

On the business front, SBI, after merger with its subsidiary banks, caters to 42.04 crore customers with a market share of 23.07 per cent and 21.16 per cent in deposits and advances, as opposed to 18.05 per cent and 17.02 per cent respectively, before the merger.

Punjab National Bank, the nearest rival of SBI among PSBs post merger, will have a market share of 5.96 per cent, and 7.04 per cent in deposits and advances.

Remuneration comprises various components, including basic salary, allowances and perquisite, PF, superannuation allowances, gratuity and performance bonus and payment of performance bonus is deferred over a multi-year period.

Not only such high disparity in compensation makes it difficult for the government to hire top managers laterally at public sector banks, as pointed out by Rajan, it also impacts the motivation of public sector managers who have to fiercely compete with their private sector peers.

First Published: Sun, June 25 2017. 18:41 IST
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