Bank PO Salary

Posted by Parveen(Hoven),
Aptitude Trainer and Software Developer

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Here is everything you need to know about the salary and promotion prospects for the job of a bank officer. You will come to know about the benefits of a bank job, then about promotion prospects, and then about the salary structure.

Bank PO Salary

A bank PO is confirmed in the pay scale: Rs. 14500-600/7-18700-700/2-20100-800/7-25700. Please note that these pay scales are revised regularly. So this is the level as of September 2015. Let me explain each part. 14500 means the basic salary. It is followed by 600/7 which means that for the coming 7 years there will be an annual increment of Rs. 600. Then you see the figure of 18700. This is the salary after the 8^th year. Then there will be an annual increment of Rs. 700 for the next 2 years, and so on. Please note that this salary is for the Junior Management Grade - Scale I. if you get promoted to a higher level you will start receiving the salary of that level. But why such a long story - Rs. 14500-600/7-18700-700/2-20100-800/7-25700 ? Who is it applicable to? If someone is not able to get promotions then he gets the salary as per this scale.

Apart from this basic salary, there are allowances that are expressed as percentage of the basic salary.

1. D.A. or dearness allowance is dependent on the inflation in the economy. It is notified by the DPE -Department of Public Enterprises. If it is 15% at a time, then 15% X 14500 = 2175 is added to the basic salary.
2. HRA and CCA are House Rent Allowance and City Compensatory Allowance. These are notified for the various cities depending on the cost of living index. This allowance is also added to your basic salary.
3. Other allowances are also added to your basic salalry. These allowances are Conveyance, Newspapers, Entertainment allowance, House & Furniture Maintenance etc.

There are various other benefits like

1. Medical Aid for self (100%) and for family (75%)
2. Home Travel Concession/Leave Fare Concession
3. Concessional Interest Rates for Housing/Car/Personal Loans

Total annual compensation in Mumbai is around Rs. 8,55,000. But please note these are as on September 2015. The revision in salaries keeps occurring regularly.

Promotion Guidelines

Following are the guidelines issued by the government by their order no. F.No.4/11/1/2011-IR Dated the March 14th, 2012. The cutoff date for determining eligibility for promotion is 1^st of April of an year.

1. An officer has to serve in rural area for a continuous period of 2 years for promotion from Scale-I to II.
2. A service of further total 3 years is required in rural and semi-urban areas for promotion from Scale II to III.
3. For promotion from III to IV, and IV to V, an officer has to pass a test for computer literacy and computer knowledge. In addition, if a candidate seeks promotion to Scale V, then he must have served as a branch head for a period of at least 3 years. The promotion is further subject to the approval by a board consisting of outside experts and officers of the Bank. The board has to assess the communication, conceptual and leadership capabilities of an officer before recommending him or her for promotion.
4. For being promoted to Scale-VII, the officer should have worked as Regional /Circle Head or must have worked, in Scale - III to V, in the Regional / CircleOffice for two years.
5. During interview for Scales-V, VI and VII, weightage is to be given to the following :-
   1. Whether the officer has worked in different specialized areas of the banks.
   2. Whether officer has been posted to different parts of India or has been onlyone / few Region / Circle.
   3. Whether the officer has experience of working in the field as well as workingin Regional / Zonal and Head Office.
   4. Whether the officer has professional qualifications and/or has the officeracquired additional qualifications after joining the service.
6. Some banks also have a system of written examination for promotion at various levels as per their Board approved policies.

Career Progression

There are 7 levels of progression in a public sector banking job. These have been indicated in the government circular no. F.No.4/11/1/2011-IR, issued by the Ministry of Finance. This circular is a set of guidelines titled Guidelines for Promotions in Public Sector Banks. I am listing the levels based on this circular.

1. Junior Management Grade - Scale I: Officer
2. Middle Management Grade - Scale II: Manager
3. Middle Management Grade - Scale III: Senior Manager
4. Senior Management Grade - Scale IV: Chief Manager
5. Senior Management Grade Scale V: Assistant General Manager
6. Top Management Grade Scale VI: Deputy General Manager
7. Top Management Grade Scale VII: General Manager

When a candidate is selected as a Probationary Officer(PO) he enters the first level - Junior Management Grade - Scale I. He/She is on a probation for two years. During this period he/she is given intensive, tightly scheduled training. After the end of this probation period he/she has to pass a screening test. This test has two benchmark levels -

1. Clearance of pre-determined standards. It is a sort of passing with distinction. The candidates who score higher than this level get an immediate promotion to the Officer Middle Management Grade Scale-II.
2. Passing Level. This level is the minimum pass marks. The candidates who pass with just the minimum required pass marks are confirmed as Junior Management Grade - Scale I.
3. Fail. The candidates who fail to pass through the screening test are removed, and their services are terminated.

Advantages of a Bank Job

A career in banking sector offers many advantages. Here are some of them.

1. Job Security: This is the foremost reason why many candidates opt for a career in banking.
2. Lifestyle: The salaries are good. So after putting in a few years of service you can enjoy a good lifestyle.
3. No Lateral Entry: Lateral entry happens only in specialized branches of IT. The core banking officers always come from the Bank PO Exam route. There is no lateral entry in the core banking area.
4. Good Exposure: Job rotation is followed in the banks. Every officer is given in-service training courses some of which are conducted at the IIMs and premier institutes of similar standing. A banking job has a possibility of postings outside India also.
5. Unbiased Exam: Most exams, like the IIM, are biased in favor of candidates with engineering background. It is not so with any bank exams. They have a very broadly defined syllabus which tests a candidate's mental ability, and class X level math. There is another good thing. Your past performance and academic record in graduation, class X, and class XII has no impact on the ranking in the exam, and also has no effect on your career, even in later years.
6. Economic Slowdown: Jobs and later career in the banking sector is not impacted by economic slowdown. Promotions are not impacted. This industry is evergreen.
7. Lakhs of Jobs: According to some estimates the banking sector in India is expected to add a significant number of jobs in the coming years. RBI is issuing more licenses for banking in India so as to expand the banking services into rural areas.
8. Even more prospects: After 3-5 years of experience you can apply and appear for the CAT exams. You can then qualify as an MBA from a reputed institute, and get an entry into the private sector. The private sector offers higher salary, and an opportunity to work in banks internationally.

List of Public Sector Banks in India

In the public sector, there are 19 Nationalised banks + State bank group (SBI + its associates)+IDBI+BMB ].

1. Punjab National Bank
2. Bank of Baroda
3. Bank of India
4. Canara Bank
5. Allahabad Bank
6. Andhra Bank
7. Bank of Maharashtra
8. Central Bank of India
9. Corporation Bank
10. Dena Bank
11. Indian Bank
12. Indian Overseas Bank
13. Oriental Bank of Commerce
14. Punjab and Sind Bank
15. IDBI Bank
16. Bhartiya Mahila Bank
17. Syndicate Bank
18. Vijaya Bank
19. UCO Bank
20. United Bank of India
21. Union Bank of India
22. State Bank of India
23. State Bank of Hyderabad
24. State Bank of Mysore
25. State Bank of Patiala
26. State Bank of Bikaner and Jaipur
27. State Bank of Travancore.

DISCLAIMER: The content in this article is for indicative purposes only. For accurate and authentic information/interpretation please contact the relevant ministry or their website for all the details.