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Salary of Bank PO  /  Salary of Probationary Officer in Public Sector banks


Rajesh Goyal 




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 last revision of salary of Bank PO / Bank Probationary officers has taken place wef 1st November, 2007.   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 ) :-


Scale I - Rs. 14500 - (600x7) 18700  - (700x2) -  20100  (800x7) -  25700 [Revision has already become due wef 01/11/2012, but it is likely to take about 1 year to finalise the same i.e. by July, 2015)

Thus, the initial Basic Pay of a Bank Probationary officer / PO  will be Rs.14,500/- (the figures in the brackets indicate the annual increment and the number of stages for which the same is applicable)



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 current DA (for the month of  May 2015, June 2015 and July 2015   is  110.70% of the Basic Pay).   DA can go up with higher inflation and also come down if the inflation rate is in negative.


(b) HRA : This depends on the place of posting and it can be either 6.5% or 7.5% or 8.5%  depending on the place of posting.


(c) CCA : This also depends on the place of posting and can be either 4% (maximum Rs.540/-) or 3%(Maximum Rs.375/-) 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.32325/-.   However, the total salary of a probationary officer who has to join in rural area will be about Rs 31494/- . [This includes HRA].    However, SBI gives four additional increments to Bank POs and thus gross salary will be higher by about Rs 5000/ See details below) 



NEWLY APPOINTED BANK PO -  INITIAL SALARY /  STARTING PAY ON JOINING  [as on 1st May,  2015 ] - PRE REVISED  - Salaries Are likely to be revised in by end of June 2015 (wef November 2012)



Major A Class Cities

Other Places in Area I

Other Places


Metro Cities

(State Capital etc.)

(District Level and Rural Areas)





Basic Pay




Dearness Allowance @ 110.70%




CCA (3% to 4% Max. Rs540/-)








Total Salary (Excluding HRA i.e. if Leased Accommodation is availed by the officer)








HRA - 8.5% ; 7.5%; 6.5%*








Total Salary (including HRA i.e. if officer does not avail leased accommodation)

32324.50 32014.50 31494.50









Note :


(a) SBI POs are paid four increments extra at the initial stage and thus their Gross Salary will be about Rs 5000 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 8000 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 32300 pm whereas in SBI, the initial cash component salary of SBI PO is around Rs37300/-pm


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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 Allownace : 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


(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 Rs 16,900/- (with 4 increments) in the scale of Rs 14500-600/7-18700-700/ 2-20100-800/7-25700 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.


At present monthly compensation at Mumbai will be approximately Rs 69,000/- inclusive of lease rental. (The salary scales are under revision with effect from November 2012).


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 70, 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 i.e. Starting Basic Pay will be Rs 16900/- in SBI, whereas in other PS Banks it is Rs145000/-. (Rs. 2400/- more as basic in SBI)  The difference becomes bigger as DA is payable on this basic pay.  This also works out to be about Rs2400/-.   Thus, starting salary in SBI is about Rs 4800/- more than other PS Banks :




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

JMGS-I - Rs.14,500/- TO Rs.31,500/-@ [as shown above for bank PO]
MMGS-II - Rs.19,400/- TO Rs.34,200/-@
MMGS-III - Rs.25,700/- TO Rs.35,100/-@

@This includes two additional stagnation increments


SMGS-IV - Rs.30,600/- TO Rs.36, 200/-
SMGS-V - Rs.36,200/- TO Rs.40, 400/-
TEG-VI - Rs.42,000/- TO Rs.46,800/-
TEG-VII - Rs.46,800/- TO Rs.52,000/


[The next revision of pay scales for Bank PO is due wef November, 2012.  However, the finalisation of  new scales is likely to be completed by 2015]




What is the total Cost to Company (CTC) for Bank Probationary Officers (As on August 2014) :


Although, Basic Pay, 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 :



Sl NO  Particulars  Monthly Annual
1 Basic 14500 174000
2 DA (@ 102.45% in August 2014) 14855 178263
3 CCA 540 6480
  Sub Total 29526 358743
4 Leased Accommodation 10000* 120000
5 Medical Aid   5100
6 Entertainment   5000
7 Newspaper   3000
8 Petrol 2500 30000
9 Canteen Subsidy 250 3000
10 Pension Contribution 1450 17400
11 Mobile / Telephone 300 3600
  Grand Total   545843


Thus CTC works out to be about 5.45 lacs for newly recruited PO in Public Sector Banks.   However, the amount eligible for items at Sl No 4 to 10 can 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 8.40 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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