Private Bank CEO Pay Gap with PSU Bank Chiefs Widens Further in FY26

Compensation for CEOs of private sector banks continued to significantly outpace that of public sector bank (PSU) chiefs in FY26. Performance-linked incentives, annual bonuses, and employee stock option plans (ESOPs) remained the primary drivers of higher pay packages at private banks. While PSU bank chiefs received larger percentage salary increases, these came from a much lower base, resulting in the absolute pay gap widening further. The disparity highlights differences in compensation structures and market-linked rewards between the two segments of the Indian banking sector. Top stocks in the banking industry: $HDFCBANK , $ICICIBANK , and $SBIN.