How Much Does A Bank PO Make In Public Sector Banks?

By Indeed Editorial Team

Updated 4 December 2022

Published 27 September 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

A probationary officer or PO in the banking sector is a lucrative and rewarding career. Various public sector banks conduct bank PO exams to fill many of their managerial level posts. Understanding the salary you earn as a bank PO can help you decide whether it is a suitable career choice. In this article, we answer “How much does a bank PO make?”, learn about the allowance and perks these professionals receive, understand the career growth of a bank PO, explore if it is a desirable and promising career and list a few responsibilities of a bank PO.

Related: How To Get a Bank Job: A Complete Guide

How Much Does A Bank PO Make?

The average national salary of a bank officer is ₹17, 839 per month. A probationary officer's exact salary depends on the bipartite settlement method a bank uses to revise the PO salary. Also, how much does a bank PO make depends on the exam they pass to become a probationary officer:

State Bank of India (SBI) PO

When a candidate clears the prelims and main examination of the SBI PO exam, they become eligible for becoming an SBI PO. The starting basic pay of SBI PO is ₹27,620 per month (with four increments) and the total salary would be a minimum of ₹7,50,000 per year and a maximum of ₹12,93,000. The variation in the salary range is because of the place of posting and other factors, like the bipartite settlement method.

Institute of Banking Personnel Selection (IBPS) PO

When candidates clear the IBPS PO examination, they can become bank PO in various public sector banks that accept the IBPS PO exam results. The basic pay of IBPS PO is ₹36,000 per month, with an annual increment of ₹980 paid up to the seventh year of service. This is the basic pay after the 11th bipartite settlement for PO. The monthly salary can vary from ₹52,000 to 53,000 depending on the job location and other factors.

Related: What Is a Salary Slip? Importance, Components and Format

Private bank PO

The salary offered to a bank PO in a private sector bank is less than that of bank POs working in a public sector bank. This is because the private bank has its set of criteria for selecting a suitable PO. They do not consider the marks secured in the IBPS PO exam or SBI PO exam. The salary may depend upon your experience, qualification and job location.

Related: How To Become a Bank Manager: A Complete Guide

Allowances And Perks Of A Bank PO

Whether you pass the SBI PO or IBPS PO, you are eligible to receive the following allowances apart from your basic pay:

House rental allowance (HRA)

The HRA of a candidate varies depending upon the state in which they work as a PO. Depending upon whether you work in the urban, rural or semi-urban sector, the HRA may vary. It can range from 7% to 9% of the basic pay.

Dearness allowance (DA)

The Government of India (GOI) pays the DA to all its public sector employees to offset the effect of inflation. The in-hand salary of a bank PO and other government employees requires constant increment to cope with the increasing prices of goods and commodities. The GOI revises DA every three months based on the All India Consumer Price Index published by the Ministry of Statistics and Program Implementation. Also, the DA can vary based on whether you work in the urban, rural or semi-urban sector.

Special allowance (SA)

Special allowance is a fixed amount given to bank PO above their basic salary to meet an employee's special requirement. Some SA offered to bank PO may include transport allowance, children's education allowance or conveyance allowance. The bipartite settlement decides the special allowance for all banking professionals and it is usually some percentage of their basic pay.

City compensatory allowance (CCA)

City compensatory allowance is an allowance that banks give to their employees to compensate for the higher living cost in metropolitan or Tier-I cities. Depending on the metropolitan city where you work as a bank PO, this can vary between 2 to 3%.

Medical allowance and leave fare concession (LFC)

A PO usually gets complete reimbursement of their medical treatment. They also get partial reimbursement of the medical bills of their immediate family members and dependants. Also, bank POs are eligible for taking paid leave for travelling after a fixed time. After their travel, they can get a partial travel amount reimbursed.

Other perks

Some perks these professionals receive include leased accommodation (depends upon the bank and its location), travelling allowance (reimbursement of office-related travel bills), newspaper reimbursement and even petrol reimbursement (depends on the bank and its location). Apart from these perks and allowance, different banks may offer additional perks like medical insurance, furniture allowance, newspaper allowance and book allowance based on their cadre. Under the new pension benefit scheme, these bank POs are eligible for receiving a pension and the pension amount varies depending upon their cadre.

Related: How To Get A Government Job (With Interview Tips and FAQs)

How Can Bank PO Increase Their Salary?

After completing probation training of two years, a candidate can join any public sector bank as a Junior Manager Grade Scale I. The salary of a bank PO increases based on the guidelines issued by the Ministry of Finance, GOI:

For an IBPS PO

There are two channels for promotion and increasing the salary, the merit channel and the normal channel. At the start of your career, you join a Grade Scale I officer, but with experience, you can become a Grade Scale V officer. The basic salary of a Senior Management Grade Scale V officer is much higher than a Grade Scale I officer.

Related: How To Prepare for an IBPS Exam in 4 Steps (With Tips)

For an SBI PO

Throughout the year, SBI examines to help bank PO earn promotions. Based on a candidate's performance, bank requirement and experience of a candidate, the bank can promote a bank PO to the following posts:

  • Assistant manager

  • Deputy manager

  • Manager

  • Assistant general manager

  • Deputy general manager

  • Deputy managing director

  • Managing director

  • Chairman

Chairman of a bank is the highest rank you can achieve in your banking career.

What Is The Starting Salary Of A Bank PO?

The starting average salary varies depending on the exam a PO passes. For instance, the starting basic salary of an SBI PO candidate is ₹27,620, with four increments given in four stages. By the end of the fourth increment, the salary of an SBI PO becomes ₹42,020. As this is a government job, the starting salary of a bank PO remains fixed and does not depend upon experience or qualification. Also, it may slightly vary based on whether you work in the rural, semi-urban or urban sector. Similarly, the starting salary of an IBPS PO depends on the bipartite settlement method a bank uses.

Is Bank PO A Good Career?

Working as a bank PO is the first level in a banking organisation and gives you a chance to function as an officer cadre. It is a promising, rewarding and most importantly, white-collar career that ensures a stable job, a healthy work environment and good pay. Bank PO is a transferrable job. Usually, a probationary officer cannot stay for more than three years in a single branch. So, if you like travelling and living in different locations, it might be the right career choice for you.

Is A Bank PO Job Desirable?

Yes, a bank PO job is desirable because the public banking sector offers some good perks and benefits. Bank PO is a desirable job because of the following reasons:

  • Job security: A bank PO job in the public sector is a permanent job and provides you with job security.

  • High salary: These professionals withdraw a high salary along with different perks and allowances.

  • Merit-based growth and promotion: These professionals receive promotions after clearing different internal examinations and growth depends upon a candidate's calibre.

  • Balanced work culture: A bank PO maintains a healthy work-life balance because it is usually not stressful and the work environment is good.

Related: Banking Officer Job Description: Skills And Responsibilities

What Are The Responsibilities Of A Bank PO?

Regardless of whether you are an IBPS PO or SBI PO, you handle various operations in a bank. From general banking to mortgages, a bank PO completes various job responsibilities. Some typical job roles and responsibilities are:

  • Bring new business to a bank by promoting its various services and products like mutual funds, insurance policies, fixed deposits and recurring deposits

  • Service a customer by providing all relevant and necessary information

  • Collect cash from the cashier, load the automated teller machines (ATM) and use transaction software of the bank

  • Resolve discrepancies related to customer account such as demand draft (DD)/NEFT/RTGS beyond a specific amount that needs approval from a bank PO

  • Keep track of the latest developments in a bank and improve product knowledge

  • Take decisions for the benefit of a bank

  • Generates a report about deposits, ledger balance and withdrawals at the close of each workday

Related: 36 SBI PO Interview Questions (With Sample Answers)

Please note that none of the companies, institutions or organisations mentioned in this article are associated with Indeed.

Salary figures reflect data listed on the quoted websites at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.

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