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Probationary Officer Compensation in India: In-Hand Salary And Perks

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A bank probationary officer is an individual who regulates the general banking management of a bank or any company that comes under the banking sector. Probationary officers are bank employees who have completed training or probation. They are promoted to the post of assistant manager of the bank. 

In addition to extravagant pay, probationary bank officers also receive numerous allowances and benefits. Due to all these advantages, bank P.O exams are one of the most coveted exams in India. The salary of a probationary bank officer varies from bank to bank. Candidates must be acquainted with the salary offered to bank PO of various banks to decide which bank they want to be employed at. 

Did you know? A probationary bank officer is the banking sector’s most sought-after position. 

Bank Probationary Officer: Overview

A probationary officer is one of the most lucrative jobs in the banking industry. Multiple exams are conducted to recruit POs into public and private sector banks. These are IBPS PO, IBPS RRB PO and SBI PO, among others. Probationary officers must undergo training at the Institute of Banking Management after the selection process is complete. Following this, individuals have a probation period of 2 years. Subsequently, aspirants can work as probationary officers and earn a salary. Although the salary structure differs slightly from bank to bank, the allowances and benefits are mostly the same from bank to bank across the sector. Nonetheless, the amounts might vary.

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Salary: Bank Probationary Officer in the Public Sector

The Bank PO is an officer cadre post within the Banking Department. Probationary officers are directly recruited as officers in the major banks of the country. 

IBPS PO Banks

The banks covered under this category are listed in the following table:

 Bank of Maharashtra

 Bank of Baroda

 UCO Bank 

 United Bank of India

 Corporation Bank 

 Oriental Bank of Commerce

 Syndicate Bank  

 Central Bank of India

 Punjab & Sind Bank  

 Andhra Bank 

 Punjab National Bank 

 Indian Bank  

 Canara Bank   

 India Overseas Bank    

 Allahabad Bank 

 Bank of India  

 Union Bank of India  

Overview of Salary Revision

The wages are revised every 5 years in a public sector bank. The salary revision is called the Bipartite Settlement. The 12th bipartite settlement is due since November 2022. The last bipartite settlement has been in effect since 1st November 2017. As per the modifications already made to the bipartite settlement, the salary of an IBPS PO has been revamped. Therefore, IBPS PO salaries are based on the 11th bipartite settlement. 

The basic salary for a bank PO is around ₹23,700. There will be an increment of ₹ 980 for the succeeding seven years. Subsequently, this results in a basic pay of ₹30,560 including an annual increment of ₹1,145 for the subsequent two years.  

Incremental Chart of Bank PO Officer 2022-23

Here is the increment structure of the Bank PO officer salary (Regarding Basic Pay):

  • Basic Pay in Year 1 ₹23,700 monthly.
  • After the 1st increment, bank PO salary amounts to ₹30,560 monthly.
  • After the 2nd increment, the bank PO salary amounts to ₹32,850 monthly.
  • After the 3rd increment, the bank PO salary amounts to ₹42,020 monthly.

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Here is a table describing the salary and different allowances paid to a bank PO in IBPS:

Sl no.

Particulars

Amount ( in ₹ )

1.

Dearness Allowance 

40 % of the basic pay

2.

City Compensatory Allowance

3 % or 4 %

3.

House Rent Allowance

7 % to 9 % of Basic Pay

4.

Special Allowance

7.75 % of Basic Pay

5.

Trip Reimbursement 

Receive full reimbursement for the trip

OR

Reimbursement of gasoline or diesel costs 

6.

Lease Accommodation

Bank pays the accommodation cost, i.e. rent

OR

Provide bank quarters as the residence

7.

Medical Expenses

 At a Fixed Cost 

8.

Learning Allowance

₹600

Note

  1. Dearness Allowance increases with time.  It should also be noted that the Bank Unions anticipate a revision in the DA in the upcoming 12th bipartite settlement.
  2. City Compensatory Allowance depends on the place of posting. 

SBI PO  

The basic pay for an SBI PO is ₹27,620 per month. The said person will also receive an increment of ₹ 980 for the succeeding seven years. Subsequently. This results in a basic pay of ₹ 30,560 per month including an annual increment of ₹1,145 for the subsequent two years. A bank PO’s salary in SBI ranges between ₹40,000 and ₹50,000 per month.

Here is a table describing the salary and different allowances paid to a bank PO in SBI per year:

Sl no.

Particulars

Amount ( in ₹ )

1.

Dearness Allowance 

46.9% of the basic pay

2.

City Compensatory Allowance

3 % or 4 %

3.

House Accommodation

Rural: Minimum – ₹8,000

Urban: Maximum – ₹29,500

4.

Furniture Allowance

₹1,20,000

5.

Medical Insurance

Employees: 100 %

Family Members: 75 %

6.

Travelling Allowance

100 %

AC-2 Tier Travel – Full reimbursement

7.

Miscellaneous

₹4,000 per year

8.

Full Compensation

₹7,50,000 to ₹12,90,000 per year

Note:

  1. Dearness Allowance increases with time.
  2. City Compensatory Allowance depends on the place of posting. 

IBPS RRB Bank PO Salary for 2022-23

The Bank PO starting salary in Regional Rural Banks is between the range of ₹29,000 to ₹ 33,000 Here is a table breaking down the bank PO pay scale:

Starting salary:

Basic Salary

₹23,700 

Annual Increment

₹980 

After 7 Consecutive Years:

Basic Salary

₹ 30,560 

Annual Increment

₹ 1,145 

After 9 Consecutive Years:

Basic Salary

₹ 32,850 

Annual Increment

₹ 1,310 

Final Pay:

Final Salary

₹ 42,021 

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Salary Of A Private Bank Probationary Officer

A private bank POs salary varies from one bank to another. Some of the private bank Po’s salaries are mentioned below:

  1. Karnataka Bank

The average bank PO salary in Karnataka Bank is ₹8.3 Lakhs per annum. This is the salary of a bank PO with experience of less than a year up to 3 years. 

  1. ICICI Bank

The average bank PO salary in ICIC Bank is ₹3.9 Lakhs per annum. This is the salary of a bank PO with experience of less than a year up to 3 years. For persons with more than 3 years of experience, the salary of an ICICI bank PO is in the range of ₹2.6 Lakhs up to ₹4.5 Lakhs.

  1. HDFC Bank

The average bank PO salary in HDFC Bank is ₹3.6 Lakhs per annum. This is the salary of a bank PO with experience of less than a year up to 3 years. For persons, with more than 3 years of experience, the salary of an HDFC bank PO is in the scope of  ₹1.2 Lakhs up to  ₹5.0 Lakhs.

  1. AXIS Bank

The average bank PO salary in Axis Bank is ₹3.05 Lakhs per annum. This is the salary of a bank PO with experience of less than a year up to 3 years. For persons, with more than 3 years of experience, the salary of an Axis bank PO is in the scope of  ₹2.1 Lakhs up to  ₹4.0 Lakhs.

Promotions Of Bank Probationary Officer

Career growth for probationary bank officers are usually based on passing certain exams, such as the departmental tests of the said bank or based on seniority. The bank PO promotions heavily depend on the individual’s commitment and performance on the job. In a few banks, the bank POs receive promotions occasionally based on the bank’s policy. 

Their abilities and qualities are also revamped regularly on their job profile. The banks in the public sector follow the policy that states rules for the promotion of bank POs issued by the Ministry of Finance. Banks in the public sector follow both methods for promotion: the superiority route and the traditional method for Bank POs promotion. 

This is the hierarchy of Bank PO promotions:

  • 1st promotion: Middle Manager
  • 2nd promotion: Senior Manager
  • 3rd promotion: Chief Manager
  • 4th promotion: Assistant General Manager
  • 5th promotion: Deputy General Manager
  • 6th promotion: General Manager
  • 7th promotion: Executive Director
  • Final promotion: Chairman and Managing Director

Conclusion

A probationary bank officer is a high-ranking position in a bank. The exams to write to qualify to become a probationary bank officer are one of the most sought-after exams in the banking field, as numerous additional benefits come along with the job position. The salary and allowances, and other benefits vary from bank to bank. These attributes are also different for public and private sector banks. However, the amounts might differ, but the benefits remain the same.

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