Private Bank CEOs See 4-12% Hike In FY25 Salaries; Kotak Mahindra Bank CEO Draws Highest Pay
Salaries of private sector bank CEOs rose between 4% and 12% year-on-year in the financial year 2024-25, with Kotak Mahindra Bank's new chief executive, Ashok Vaswani, emerging as the highest-paid among them with a total remuneration of Rs 12.95 crore, according to a report by Moneycontrol.
Vaswani, who officially took charge on January 1, 2024, drew Rs 1.62 crore for the three-month period in FY24. His predecessor and bank promoter, Uday Kotak, had opted for a token Re 1 salary in FY23.
Among private sector peers, HDFC Bank's CEO Sashidhar Jagdishan saw the steepest annual hike of 11.96%, with a total pay of Rs 12.08 crore in FY25, excluding employee stock options. Jagdishan was also granted 2,12,052 ESOPs in the previous fiscal. Notably, he received Rs 2.63 crore in January FY25 as part of the 50% cash variable pay for FY24, out of an RBI-approved total of Rs 5.25 crore, the bank's annual report showed.
Axis Bank's CEO Amitabh Chaudhry earned Rs 9.11 crore in FY25, a marginal 0.2% increase from the previous year. He was granted 2,59,429 stock options, lower than 3,13,300 in FY24.
At IDFC First Bank, CEO V Vaidyanathan took home Rs 5.55 crore, up 4.53% from Rs 5.30 crore a year earlier. He received 24,20,626 stock options in FY25, compared to 30,59,514 in FY24.
According to the Moneycontrol report, these figures exclude full-year variable payouts, which often face delays due to regulatory approval processes. Overall, the average CEO salary hike among private banks stood at 6% in FY25, slightly lower than the 8% increase recorded in FY24.
The annual reports for ICICI Bank and Yes Bank were not yet available at the time of publishing the story.
Widening Salary Gap with PSU Banks
The disparity in compensation between private and public sector bank chiefs remained stark in FY25. As per Moneycontrol, Jagdishan's salary alone was more than double the combined salaries of the top 10 public sector bank heads.
The collective remuneration of CEOs at major PSU banks — including SBI, BoB, Canara Bank, PNB, and others — stood at Rs 5.13 crore in FY25, up from Rs 4.46 crore in FY24. PSU bank chiefs earned between Rs 42 lakh and Rs 81 lakh, significantly lower than their private sector counterparts.
Bank of Baroda MD & CEO Debadatta Chand was the highest-paid among PSU chiefs, with a salary of Rs 74 lakh, up from Rs 58.70 lakh in FY24. He was followed by Indian Overseas Bank's Ajay Kumar Srivastava at Rs 64.40 lakh, and SBI Chairman Challa Sreenivasulu Setty at Rs 63.87 lakh.
CEOs of smaller PSBs like Bank of Maharashtra and Canara Bank earned even less — Rs 37.81 lakh and Rs 42.41 lakh, respectively, in FY25.
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