 "Despite pay cut, IDFC's Rajiv Lall gives bankers a run for their money")
In terms of salary, banker-in-waiting Rajiv Lall, executive chairman of IDFC Ltd, already has a head start over commercial bankers. Despite the fact that he took a pay cut last financial year, Lall's salary is second only to that of Aditya Puri, managing director of HDFC Bank.
According to IDFC's annual report for 2013-14, Lall's total remuneration last financial year was Rs 5.55 crore, against Rs 5.84 crore in 2012-13.
Among commercial bankers, Puri is the highest paid executive, with a salary of Rs 6.07 crore in 2013-14, followed by Chanda Kochhar, managing director and chief executive of ICICI Bank, at Rs 5.23 crore. While Puri's pay rose 20.9 per cent in 2013-14, Kochhar's increased a modest two per cent.
An email query to IDFC remained unanswered.
The remuneration of both Lall and Vikram Limaye managing director and chief executive of IDFC) fell in FY14 compared to the previous financial year. Limaye's salary fell from Rs 4.93 crore to Rs 4.86 crore. For both, the salary and perquisite component rose, but performance-linked incentives saw a decline.
This is understandable. Last financial year, IDFC's performance took a hit on account of slow growth in the infrastructure sector. For the fourth quarter of 2013-14, the company's net profit saw a steep 51 per cent drop at Rs 257.94 crore, compared to the year-ago period. For the full financial year, net profit fell 1.82 per cent---to Rs 1,802.68 crore from Rs 1,836.20 crore in 2012-13.
Project finance, the company's core business, was under pressure in 2013-14. The annual report said gross approvals under project finance for FY14 stood at Rs 25,683 crore, one per cent lower than in FY13.
Gross disbursements fell eight per cent to Rs 16,296 crore compared to 2012-13.
In the annual report, Lall had said, "During FY14, India continued to show deceleration in growth, with GDP (gross domestic product) growth lower than five per cent. The macroeconomic environment was difficult, with a slowdown in the investment cycle, persistently high headline inflation and a volatile currency and interest rates. The trend of declining private investment in infrastructure continued during the year."
According to IDFC's annual report for 2013-14, Lall's total remuneration last financial year was Rs 5.55 crore, against Rs 5.84 crore in 2012-13.
Among commercial bankers, Puri is the highest paid executive, with a salary of Rs 6.07 crore in 2013-14, followed by Chanda Kochhar, managing director and chief executive of ICICI Bank, at Rs 5.23 crore. While Puri's pay rose 20.9 per cent in 2013-14, Kochhar's increased a modest two per cent.
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In a recent interaction with Business Standard, an ICICI Bank spokesperson had said, "ICICI Bank reports 'earned salaries' in its annual report, which is a prudent reporting practice. A few other banks report 'paid salaries'. Therefore, the salaries of chief executives across banks aren't strictly comparable. If we were to report our managing director and chief executive's paid salary, it would have increased similarly."
An email query to IDFC remained unanswered.
The remuneration of both Lall and Vikram Limaye managing director and chief executive of IDFC) fell in FY14 compared to the previous financial year. Limaye's salary fell from Rs 4.93 crore to Rs 4.86 crore. For both, the salary and perquisite component rose, but performance-linked incentives saw a decline.
This is understandable. Last financial year, IDFC's performance took a hit on account of slow growth in the infrastructure sector. For the fourth quarter of 2013-14, the company's net profit saw a steep 51 per cent drop at Rs 257.94 crore, compared to the year-ago period. For the full financial year, net profit fell 1.82 per cent---to Rs 1,802.68 crore from Rs 1,836.20 crore in 2012-13.
Project finance, the company's core business, was under pressure in 2013-14. The annual report said gross approvals under project finance for FY14 stood at Rs 25,683 crore, one per cent lower than in FY13.
Gross disbursements fell eight per cent to Rs 16,296 crore compared to 2012-13.
In the annual report, Lall had said, "During FY14, India continued to show deceleration in growth, with GDP (gross domestic product) growth lower than five per cent. The macroeconomic environment was difficult, with a slowdown in the investment cycle, persistently high headline inflation and a volatile currency and interest rates. The trend of declining private investment in infrastructure continued during the year."