State Bank of India Chairman Dinesh Khara took home Rs 34.42 lakh in annual salary in FY’22, which is 13.4 percent higher than the compensation given to his predecessor Rajnish Kumar in the previous year, the lender’s latest annual report disclosed.
Khara was elevated to the post of chairman by SBI in October 2020. Before becoming chairman, he served as managing director of the bank in charge of global banking and SBI subsidiaries, among others.
Former SBI Chairman Rajnish Kumar’s total remuneration stood at Rs 30.34 lakh, of which Rs 14.04 lakh was against leave encashment paid on retirement in October 2020.
For the fiscal year 2021-22, Khara was paid Rs 27 lakh in basic pay and Rs 7,42,500 as dearness allowance. Of the total Rs 38.12 lakh he earned in FY21, Rs 4 lakh was in form of incentives.
In comparison, Canara Bank managing director and chief executive L V Prabhakar received Rs 36.89 lakh salary in FY22, while Bank of Baroda paid a compensation of Rs 40.46 lakh to its managing director and chief executive Sanjiv Chadha during the year.
State Bank of India has formed a nomination and remuneration committee (NRC) to conduct due diligence and arrive at the ‘fit and proper’ status of candidates filing nominations for election as Directors by shareholders, the annual report said.
This panel has been formed in accordance with the RBI and central government directions in 2019.
State Bank offers compensation of Rs 70,000 as ‘sitting fees’ for the non-executive director attending the meetings of the central board and Rs 30,000 for attending the meetings of other board level committees.
Compared to private lenders, the annual compensation given by public sector banks to managing directors ad CEOs is significantly lower.
