State Bank of India has paid its auditors more than 100 times of what it gave to its directors, even as the chairman of the government-run bank got a hike of about 25 per cent last fiscal.
Chairman O P Bhatt's total remuneration, including salary and other incentives, rose from about Rs 16.2 lakh (Rs 1.62 million) in 2007-08 to about Rs 20 lakh (Rs 2 million) in 2008-09, according to the company's annual accounts to be presented for shareholders approval at the bank's annual general meeting on Friday.
The bank's profit and loss account for the year ended March 31, 2009 showed that it incurred a total of Rs 99.81 lakh (Rs 9.98 million) towards 'directors' fees, allowances and expenses.'
At the same time, the auditors' fees and expenses, including those for branch auditors, stood at about Rs 103.7 crore (Rs 1.03 billion) during the year. It paid Rs 97.3 crore (Rs 973 million) to the auditors in the previous fiscal, while the directors' fees and expenses stood at about Rs 1.2 crore (Rs 12 million) in 2007-08.
On consolidated basis, however, both directors' and auditors' fees and expenses at State Bank group increased during 2008-09. While directors' fees, allowances and expenses rose to about Rs 5.6 crore or Rs 56 million (from about Rs 5.03 crore or Rs 50.3 million), the auditors' fees and expenses increased to Rs 162.25 crore or Rs 1.62 billion) (from Rs 157.9 crore or Rs 1.57 billion).
The bank has 14 auditors for as many circles in the country.
As per the auditors' report, the bank's statutory central auditors have audited the accounts of central office, 14 local head offices, corporate accounts group (central), mid-corporate group (central), stressed assets management group (central) and 42 branches.
Besides, accounts of 9,255 Indian branches have been audited by other auditors, the books of 40 foreign branches audited by the local auditors.
In addition, there are 2,504 other Indian branches, the unaudited returns of which are certified by the branch managers.
"These unaudited branches account for 0.54 per cent of advances, 2.11 per cent of deposits, 0.44 per cent of interest income and 1.45 per cent of interest expenses", auditors said.
On payments made to directors, the bank said that it pays remuneration to its whole-time directors and sitting fees to the non-executive directors.
The directors are given a sitting fee of Rs 5,000 for attending every central board meeting and Rs 2,500 for attending a meeting of a Board-level committee. Sitting fees are, however, not paid to the chairman and managing directors of the bank and GOI and RBI nominees.
Bhatt was paid Rs 19,97,928.73 crore (Rs 19,979.28 billion), including incentives during 2008-09 while managing director S K Bhattacharyya got Rs 12,91,261.13 crore (Rs 12,912.61 billion) during the same period.
Another managing director R Sridharan got Rs 5,06,778.06 as he was promoted to the post in December 2008.
