HDFC Bank's Aditya Puri gets 32% hike in remuneration

The managing Director of HDFC Bank got paid a salary of 9.73 crore in FY16

Aditya Puri, managing director of HDFC Bank, highest paid private bank chief in the past financial year, has received a salary increase of 32 per cent and received a remuneration of Rs 9.73 crore in FY16.

In FY15, Puri had taken home Rs 7.39 crore, a jump of 21.74 per cent from Rs 6.07 crore in FY14. The bank’s net profit has inched up 20 per cent to Rs 12,296.2 crore in FY16. In the past financial year, the bank’s asset quality remained largely stable. With the percentage of gross non-performing assets (NPA) to gross advances at 0.94 per cent, it registered an improvement on a sequential basis — against 0.97 per cent in the quarter ended December. Net NPA also eased on a sequential basis — it was 0.28 per cent against 0.29 per cent at the end of the third quarter of FY16.

Deputy Managing Director-Paresh Sukthankar and Executive Director Kaizad Bharucha received Rs 5.14 crore and Rs 3.46 crore, respectively.

The private lender said it plans to take approval to raise Rs 50,000 crore in its annual general meeting (AGM). “The approval by way of special resolution of the members is, therefore, sought for issue of aforesaid NCDs (non-convertible debentures)/bonds in terms of said RBI (Reserve Bank of India) guidelines on a private placement basis, in one or more tranches/series and under one or more shelf disclosure documents and/or one or more letters of offer, for a period of one (1) year from the date of passing of the resolution,” said the AGM notice. The funds will be used for affordable housing.

In July 2015, RBI had issued guidelines for banks on 'Issue of long-term bonds by banks-financing of infrastructure and affordable housing' to ensure availability of funding to such sectors.

These guidelines enable banks to raise long term funds from the market, HDFC Bank said. Besides, the AGM agenda includes appointment of a director. "To appoint a director in place of Keki Mistry, who retires by rotation and being eligible, offers himself for re-appointment," it added.

Last year, the bank had sought approval for a fundraising plan of similar amount. ICICI Bank in its recent AGM notice had announced that it is plans to raise not more than Rs 25,000 crore in FY16 as compared with an approval of Rs 50,000 crore it had sought in FY15.