Date:22/07/2005 URL: http://www.thehindubusinessline.com/2005/07/22/stories/2005072202720100.htm

Back Premji enjoys housing loan subsidy!

Vishwanath Kulkarni

Bangalore , July 21

IF you thought it was just the common man who was attracted by the low interest home loans these days, think again. Surprisingly, even the richest man in the country, the Chairman of Wipro, Mr Azim Premji, has gone in for a home loan.

Mr Premji's annual compensation of $5.2 lakh (over Rs 2.29 crore) for 2004-05 included a subsidy of $4,808 (over Rs 2 lakh) towards interest payments on his independent housing loan. This small print is tucked away as a footnote to one of the tables relating to executive compensation in Wipro's Annual Report for 2004-05.

The annual compensation of Mr Premji, who owns close to 84 per cent stake in Wipro that has a market cap of Rs 47,100 crore, also included commissions at the rate of 0.1 per cent of company's net profits.

Details of the home loan such as the quantum were not available and could not be ascertained. Mr Premji is said to have moved into his new residence, adjacent to the Wipro corporate campus at Sarjapur Road, in recent years.

Property prices on Sarjapur Road, in the South Eastern part of Bangalore, have seen a sharp upswing especially after Wipro set up its campus there several years ago.

Moreover, the Government's move in recent years to set up an IT corridor between Sarjapur Road and Hosur Road has propped up the prices further.