HDFC Bank CEO Anup Bagchi’s Rs 35.89 Crore Pay Package Explained

Anup Bagchi is set to take charge as HDFC Bank’s Managing Director and CEO on October 27, 2026, and the bank has proposed an annual pay package of Rs 35.89 crore for him.

According to HDFC Bank’s postal ballot notice, Rs 8.97 crore of the package will be fixed pay. The remaining amount will be linked to performance, with variable pay going up to Rs 26.92 crore for 2026-27.

Bagchi has been appointed for a three-year term, which will run until October 26, 2029. The Reserve Bank of India (RBI) has given its approval to his appointment and pay package. HDFC Bank will now seek shareholders’ approval for the proposal.

Salary and fixed pay

Bagchis annual salary has been set at Rs 3.31 crore. Bagchi does not receive a separate dearness allowance. Bagchi’s retirement benefits include Rs 39.82 lakh for the fund Rs 21.37 lakh for gratuity Rs 46.46 lakh for pension/NPS and Rs 49.77 lakh, for superannuation.

The package also includes Rs 55.31 lakh as leave fare concession or allowance and Rs 1.09 crore under other fixed allowances. Including perquisites, the total fixed remuneration comes to Rs 8.97 crore.

House, cars and other perks

Housing is among the biggest benefits, valued at Rs 1.65 crore annually. This can be provided through house rent allowance, leased accommodation or a company-provided furnished residence.

Bagchi will also receive Rs 54 lakh a year as conveyance allowance or for the use of the bank’s cars. He can be provided up to two company cars with an ex-showroom price of Rs 1.40 crore, along with fuel of up to 700 litres per month and maintenance at actual cost.

Other benefits include club membership worth Rs 3.72 lakh, a loan perquisite of Rs 17.62 lakh, medical insurance premium of Rs 1.73 lakh and personal accident insurance premium of Rs 69,384.

Rs 3.75 crore housing loan and insurance

The proposed package includes a housing loan facility of Rs 3.75 crore. The amount is split into two equal slabs, carrying interest rates of 2.5 per cent and 5 per cent, respectively.

Bagchi will also receive family floater medical insurance of Rs 50 lakh covering his spouse, two children and dependent parents. Personal accident insurance provides life cover of Rs 12 crore in case of an accident.

Variable pay up to Rs 26.92 crore

The performance-linked portion is the biggest component of Bagchi’s proposed remuneration. The bank has set target variable pay at Rs 26.92 crore, equivalent to 300% of fixed pay.

This includes Rs 8.88 crore in cash and Rs 18.03 crore in share-linked instruments. The cash component will be partly paid upfront, with the remainder deferred over three years.

The non-cash portion comprises 7,11,801 ESOP/ESOS instruments, valued using an indicative Black-Scholes value of Rs 253.42 per instrument. These awards will vest over four years.

Joining bonus and background

Separately, HDFC Bank has proposed a one-time joining bonus worth about Rs 7.34 crore through RSUs and ESOP/ESOS instruments. These awards will also vest over four years.

Bagchi, 56, has more than three decades of experience in banking, capital markets, wealth management and insurance. He joined the ICICI Group in 1992 and has held senior roles including CEO and MD of ICICI Securities, Executive Director at ICICI Bank and MD and CEO of ICICI Life Insurance since June 2023.

His annual increments will be performance-linked and require RBI approval.

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Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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