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Salary of Bank PO  /  Salary of Probationary Officer in Public Sector banks (Revised as per Xth BPS)

by Team




What is Bank PO's Salary / Bank Probationary Officer Salary (newly recruited) ?


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Bank PO's  salary or Bank Probationary officer's  starting salary in most of public sector banks and even in some private banks is same.  The latest revision of salary of Bank PO / Bank Probationary officers has taken place wef 1st November, 2012 (The final agreement has been signed only on 25th May, 2015) .   All newly recruited POs are placed in the following scale at the 1st stage of the same.  (However, banks like SBI, ICICI bank and other private sector banks have some different start for probationary officers ).   The revised salary as on 1st June 2015 will be as per Scale I given below :


Scale I -

23700 -

(980 x 7 ) -

30560 -

(1145 x 2 ) -

32850 -

(1310 x 7) -



(the figures in the brackets indicate the annual increment and the number of stages for which the same is applicable)



Thus, the revised  initial / starting Basic Pay of a Bank Probationary officer / PO  will be Rs.23,700/- as on 1st June 2015



What are other major allowances payable on monthly basis as part of the salary to bank PO:


In addition to Basic Pay, bank officers (i.e. Probationary officers / PO / Management Trainees) are eligible for the following allowances :-


(a) Dearness Allowance (DA)  :  DA in banks is revised on quarterly basis (i.e. in the months of February, May, August and November) based on the CPI as declared by Government of India. 

The new revised current DA (for the month of  May 2016, June 2016 and July 2016  is  41.90% of the Basic Pay).   DA can go up with higher inflation and also come down if the inflation rate is in negative.


(b) Special Allowance : This has been added in 10th BPS (wef 01/11/2012) and for scale I is 7.75% on which DA is also payable


(c) HRA : This depends on the place of posting and it can be either 9.0% or 8.0% or 7.0%  depending on the place of posting.


(d) CCA : This also depends on the place of posting and can be either 4% (maximum Rs.870/-) or 3%(Maximum Rs.600/-) or 0%



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What is the total salary of a Bank PO / Probationary Officer / Management Trainee (Starting salary of newly appointed PO) :


The above indicates that the total salary of a probationary officer on joining at a metro station will be around Rs.39239/-.   However, the total salary of a probationary officer who has to join in rural area will be about Rs 37895/- . [This includes HRA].    However, SBI gives four additional increments to Bank POs and thus gross salary will be higher by about Rs 6000/ See details below) 






  Major A Class Cities*  Area - I*  Other Areas
Basic Pay 23700 23700 23700
Special Allowance 1836.75 1836.75 1836.75
DA                            10,699.90              10,699.90              10,699.90
CCA 870 600  
Transport Allowance 0 0 0
Total (without HRA)                            37,106.65              36,836.65              36,236.65
HRA 2133 1896 1659
Gross with HRA                   39,239.65        38,732.65        37,895.65

*The definition and coverage of the areas for CCA and HRA are different.   We have clubbed these to give approximate salary at three levels of areas.


Note :


(a) SBI POs are paid four increments extra at the initial stage and thus their Gross Salary will be about Rs 6000 higher


(b) In lieu of HRA, most of the banks allow you to take leased accommodation, the amount of which varies from bank to bank and also depends on place of posting (The entitlement of such accommodation ranges from Rs 10000 to Rs 29,000 p.m (approximate).   See the details below. 


 (c) Thus, we can say the salary cash component of Bank PO in Public Sector banks is around Rs 39200 pm whereas in SBI, the initial cash component salary of SBI PO is around 45000/-pm (including HRA)


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What are other perks that are available to Bank PO :


There are number of other perks available to Bank officers and these vary from bank to bank, and even the amount of such perks vary from bank to bank.   SBI gives more perks than all other nationalised banks.  Some of the perks available to Bank officers are :-


(a) Leased Accommodation :  As mentioned above this facility is available to Bank officers in lieu of HRA.   At some stations, some banks may offer official bank accommodation / bank quarters in lieu of leased accommodation.   The lease amount vary from bank to bank and place of postings. However, you should remember that this amount is not available as cash component and will directly go to the house owner - you have got leased.


(b) Travelling Allowance : Some banks allow fixed Travelling Allowance whereas others allow reimbursement of petrol bills i.e. officer must own  scooter / car at the place of posting


(c) Newspaper Reimbursement : A fixed monthly amount is paid towards the cost of one newspaper


(d) Medical Aid : A fixed annual amount is paid by most of the banks (Revised amount is Rs8000/- p.a.)


(e) Coverage under New Pension Scheme



Salary of PO in State Bank of India / PO Salary in SBI :


PAY: In SBI, the starting basic pay is with 4 increments in the scale of Rs23700-980-30560-32850-1310-42020 applicable to Junior Management Grade Scale I.


The official will also be eligible for D.A., H.R.A & C.C.A as per rules in force from time to time.


The officers are required to make 10% of their basic pay as contribution to Provident Fund and the Bank also makes matching contribution to the Employees Provident Fund.


The new entrants will be governed by the Defined Contribution Pension Scheme/New Pension Scheme, where each employee is required to contribute 10% of Basic Pay and D.A. towards pension scheme and Bank also makes matching contribution.




(1) Leased accommodation ranging from Rs 8,000/- in C category Centres to Rs 29,500/- in Mumbai Centre.

(2)   Medical Aid for self (100%) and for family (75%).

(3)   Home Travel Concession/ Leave Fare Concession.

(4)   Concessional interest rates for Housing/Car/Personal Loans




NOTE : The candidates should not get confused by the amount of Salary shown by SBI as Rs 80, 000/- pm  as it includes the prerequisite of Leased Accommodation to the extent of Rs 29000 in Mumbai.  This is not cash component but a facility to get a house in Mumbai if you are posted there.   Basically, the salary difference between SBI and other PS Banks is that of 4 increments  The difference becomes bigger as DA is payable on this basic pay.    Thus, starting salary in SBI is about Rs 6000/- more than other PS Banks :



What are other scales on promotion from Scale I to Scale VII



Scale I -

23700 -

980 -

30560 -

1145 -

32850 -



Scale II -

31705 -

1145 -

32850 -

1310 -

45950 -



Scale III -

42020 -

1310 -

48570 -

1460 -

51490 -



Scale IV -

50030 -

1460 -

55870 -

1650 -

59170 -



Scale V -

59170 -

1650 -

62470 -

1800 -

66070 -



Scale VI -

68680 -

1960 -

76520 -





Scale VII -

76520 -

2120 -

85000 -









What is the total Cost to Company (CTC) for Bank Probationary Officers (As on May 2016) :


Although, Basic Pay, Special Allowance, DA are clearly defined for POs, yet other allowances like HRA / leased accommodation, Petrol charges, Medical Allowance,  Entertainment allowances, canteen subsidy, vary from bank to bank and place of posting (rural / semi urban / metro).  Thus, CTC will vary from bank to bank and place of posting.  However, we give below a  BROAD  CTC for Bank POs (without leased accommodation) :


  Monthly Yearly
Basic Pay 23,700 2,84,400
Special Allowance 1836.75 22041
DA                                   10,700                  1,28,399
CCA 870 10440
Transport Allowance 0 0
Total (without HRA)                                  37,107  
HRA 2133 25596
Gross with HRA                          39,240  
Medical Aid   8000
Entertainment 500 6000
Newspaper 300 3600
Petrol 3000 36000
Telephone 400 4800
Canteen Subsidy 400 4800
Pension Contribution 2500 30000
Gross Annual CTC (with HRA but without leased accommodation)             5,64,076


Thus CTC works out to be about 5.64 lacs for newly recruited PO in Public Sector Banks.  However allowances like medical aid, entertainment, newspaper etc vary from Bank to Bank and place of posting.   Some Banks like SBI also give additional benefits and thus they claim CTC to be above Rs 9.50 lacs (at metros with bank leased accommodation ).


* Revise DA as given above to get the latest CTC.



What is the Job Profile of a Bank Probationary officer / What is Job Profile of Bank PO


Probationary Officers are directly recruited officers in the banks who are initially recruited on probation (which is normally in all types of jobs) for 2 years period.  It is a coveted job as bank officers usually enjoy good respect and prestige in Indian society.  This is the entry point for officers in the bank.  Usually they are initially given training, which ranges from few weeks to one year.  After the training, they are placed either in a branch or administrative office.  At the branch PO is supposed to look after the branch working which can include passing of cheques, evaluating loan proposals; marketing of bank products etc





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