LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
»
1-min read

RBI Holds Up Year-end Bonuses of ICICI, HDFC and Axis Bank CEOs; Questions Size of Payouts

According to the report, ICICI approved a bonus of Rs 2.2 crore for Kochhar while Axis Bank’s Shikha Sharma was set to receive Rs 1.35 crore and HDFC Bank’s Aditya Puri about Rs 2.9 crore. A comment from either of three banks or the RBI was not forthcoming.

News18.com

Updated:April 6, 2018, 4:49 PM IST
facebookTwittergoogleskypewhatsapp
RBI Holds Up Year-end Bonuses of ICICI, HDFC and Axis Bank CEOs; Questions Size of Payouts
Representative image. (Reuters)
Loading...
New Delhi: The year-end bonus of chief executive officers of various private banks has been reportedly delayed by the Reserve Bank of India which has raised questions about whether the payouts is merited.

According to a report by Bloomberg, the RBI has questioned the size of the payouts, citing the lenders’ performance issues.

The affected CEOs include those of HDFC Bank, ICICI Bank and Axis Bank, the country’s biggest private lenders in terms of assets.

Sources told Bloomberg that the bankers are yet to receive bonuses for the financial year that ended on March 31, 2017, as the RBI hasn’t signed off on the proposed payments.

This revelation comes at a time when both ICICI Bank and Axis Bank has been hit by allegations of loan fraud, especially against ICICI CEO Chanda Kochhar.

According to the report, ICICI approved a bonus of Rs 2.2 crore for Kochhar while Axis Bank’s Shikha Sharma was set to receive Rs 1.35 crore and HDFC Bank’s Aditya Puri about Rs 2.9 crore. A comment from either of three banks or the RBI was not forthcoming.

The country’s private banks have suffered a knock on their reputation over the past one year, with multiple revelations of hidden bad loans and alleged lapses in corporate governance. They have also come at a bad time for Prime Minister Narendra Modi, who has built his reputation of being anti-graft, and his government which facing an election next year.

Asutosh Kumar Mishra, a Mumbai-based banking analyst at Reliance Securities Ltd, told Bloomberg, “We have never noticed such delay in approving the payouts, but then we haven’t seen a year in which so many skeletons were brought out of the closet -- from under-reporting of bad loans to serious governance issues.”

In the year that ended March 2017 – for which the bonuses are under contention – an RBI audit showed Axis hadn’t disclosed bad loans worth about Rs 5,600 crore. HDFC Bank also reported a divergence and ICICI said it isn’t required to make disclosures on the topic even as provisions for bad loans climbed.
| Edited by: Ashish Yechury
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 208.35 2.64
Jet Airways 269.70 -8.17
Zee Entertain 452.10 -1.03
Reliance 1,135.90 0.55
Infosys 736.80 1.40
Company Price Change %Gain
HDFC Bank 2,120.00 -0.05
Yes Bank 208.35 2.66
Jet Airways 271.00 -7.95
Natco Pharma 679.90 -1.68
Graphite India 752.50 8.33
Top Gainers
Company Price Change %Gain
Yes Bank 208.35 2.64
Indiabulls Hsg 829.60 2.57
IndusInd Bank 1,526.70 2.11
Wipro 336.55 2.05
BPCL 347.25 1.62
Company Price Change %Gain
Yes Bank 208.35 2.66
IndusInd Bank 1,526.90 2.02
Infosys 736.55 1.38
ICICI Bank 375.10 0.68
ONGC 146.00 0.62
Top Losers
Company Price Change %Gain
JSW Steel 286.45 -1.93
Bharti Infratel 275.85 -1.39
Bajaj Finance 2,569.85 -1.32
Vedanta 196.30 -1.31
UPL 766.10 -1.27
Company Price Change %Gain
Vedanta 196.25 -1.33
Bharti Airtel 333.35 -1.27
Asian Paints 1,389.00 -1.21
Hero Motocorp 2,880.05 -1.07
Bajaj Finance 2,572.95 -1.01

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results