In the financial year 2022-2023, the average salary of chief executives of public-sector banks (PSBs) in India was ₹37.7 lakh per year, according to an analysis of annual reports conducted by BusinessLine. This analysis covered 11 out of the country’s 12 PSBs, including State Bank of India, Punjab National Bank, and Bank of Baroda. The annual report for Union Bank of India was not available for FY23.
Among the PSB chiefs, the Managing Director and CEO of Punjab National Bank received the highest salary of ₹48.34 lakh, followed by the MD and CEO of Indian Overseas Bank with ₹48.09 lakh. It should be noted that the salary for Indian Overseas Bank reflects the combined remuneration of two chiefs who served during FY23, including retirement benefits and gratuity for the one who retired.
| Bank | MD & CEO Salary |
|---|---|
| Punjab National Bank | Rs.48.34 lakh (FY23) |
| Indian Overseas Bank | Rs.48.09 lakh (FY23) |
| Bank of Maharashtra | Rs.47.80 lakh (FY23) |
| State Bank of India | Rs.37 lakh (FY23) |
| HDFC Bank | Rs.6.5 crore (FY22) |
| Axis Bank | Rs.7.95 crore (FY22) |
| IndusInd Bank | Rs.7.5 crore (FY22) |
The MD and CEO of Bank of Maharashtra received a salary of ₹47.80 lakh, marking a 41% increase compared to FY22, partly due to a performance-linked incentive of ₹10.72 lakh.
The chairman of State Bank of India received ₹37 lakh in FY23, which was 7.8% higher than the previous year. This led to some criticism as the pay of PSB chiefs is often compared to their counterparts in private banks. However, the FY23 reports of most major private banks are yet to be released. Based on the FY22 reports, the CEO of HDFC Bank received an annual salary of ₹6.5 crore, while the chiefs of Axis Bank and IndusInd Bank received ₹7.95 crore and ₹7.5 crore, respectively. It is worth mentioning that Uday Kotak, the chairman of Kotak Mahindra Bank, did not draw a salary in FY22.
The relatively modest pay of PSB chiefs has been a subject of discussion for some time. In 2016, former Reserve Bank of India governor Raghuram Rajan highlighted how the salaries of PSB chiefs were lower compared to global standards, stating that there was an issue of underpayment at the top levels in the public sector.