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IBPS 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 ofIBPS 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 IBPS PO s 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) – 42020

(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 /IBPS 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 2015, June 2015 and July 2015   is  33.70% 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%

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.37145/-.   However, the total salary of a probationary officer who has to join in rural area will be about Rs 35800/- . [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) 



Major A Class Cities*  Area – I*  Other Areas
Basic Pay 23700.00 23700.00 23700.00
Special Allowance 1836.75 1836.75 1836.75
DA 8605.88 8605.88 8605.88
CCA 870.00 600.00
Transport Allowance 0.00 0.00 0.00
Total (without HRA) 35012.63 34742.63 34142.63
HRA 2133.00 1896.00 1659.00
Gross with HRA 37145.63 36638.63 35801.63


*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 37100 pm whereas in SBI, the initial cash component salary of SBI PO is around 43000/-pm (including HRA)

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 IBPS PO 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 IBPS PO 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 IBPS PO 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 – 1310- 42020
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 June 2015) :

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 23700.00 284400.00
Special Allowance 1836.75 22041.00
DA 8605.88 103270.62
CCA 870.00 10440.00
Transport Allowance 0.00 0.00
Total (without HRA) 35012.63
HRA 2133.00 25596.00
Gross with HRA 37145.63
Medical Aid 8000.00
Entertainment 500.00 6000.00
Newspaper 300.00 3600.00
Petrol 3000.00 36000.00
Telephone 400.00 4800.00
Canteen Subsidy 400.00 4800.00
Pension Contribution 2500.00 30000.00
Gross Annual CTC (with HRA but without leased accommodation) 5,38,947.62



Thus CTC works out to be about 5.40 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 IBPS 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 IBPS 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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