What Is the Salary of a PO in Government Banks?

0
10726
salary of a po

Are you looking for a high-paying job in the banking sector? How much do you think is the salary of a PO in the Banking sector? You’ll be surprised to find that a bank job offers a very handsome salary, reputation in the society and job security, thereby making it a very lucrative career option. Allowances and perks are an icing on the cake apart from the salary of a PO.

Keep reading and this post will give you valuable insights into the salary of a PO and help you zero in on your dream banking job. First, lets go through the basic terminology of salary and the salary structure of various Public Sector (PSU) banks.

Basic terminology of salary in Banks

  1. Basic Pay or Basic Salary: It is that amount which a bank pays to an employee excluding any allowances.
  2. Allowances: These are additional expenses given as a percentage of basic salary. Most common types of allowances are:

(a) Dearness Allowance (DA): It is a cost of living adjustment allowance paid to the Government and Public Sector (PSU) employees. In banks, it is revised on a quarterly basis (i.e. every three months) based on the Consumer Price Index (CPI), which is the deciding factor for the inflation of that quarter. Hence, DA is directly proportional to inflation. DA for the quarter November 2015 to January 2016 is 39.80% of the basic pay.

(b) House Rent Allowance (HRA): It is given to employees to meet expenses pertaining to rent of their accommodation. HRA of a bank PO depends on the place of posting. It is calculated as 9.0% or 8.0% or 7.0% depending upon metro cities, big cities and other locations.

(c) Special Allowance: This allowance is paid over and above basic salary. It is 7.75% of the basic pay.

(d) Compensatory City Allowance (CCA): It is paid to employees who are posted in metro cities.

(e) Conveyance Allowance: It is paid for commuting between home and office. Some banks provide fixed Traveling Allowance (TA) while others allow reimbursement of fuel bills.

Perks

(a) Leased Accommodation:  This facility is available to a bank PO in lieu of HRA. In some cities, banks provide Official Bank Accommodation as leased accommodation.

(b) Newspaper Reimbursement: A fixed monthly amount is paid for one newspaper.

(c) Medical Aid: A fixed annual amount is paid by most of the banks.

(d) Benefits of New Pension Scheme: As per this scheme, every employee has to contribute 10% of Basic Pay and D.A. and the bank also makes corresponding contribution.

Promotions: There is a step-by-step career progression in each Public Sector (PSU)/Government bank. You can join as a PO and climb upto CMD level. Many public sector banks have foreign branches. Thus, a Public Sector (PSU) bank gives you an opportunity of working abroad as well.

Comparison between Banks

Let’s go through the salary breakdown of SBI PO and IBPS PO.

IBPS POSBI PO
Rs. 37,360 -38,700 per month

(Including HRA)

Rs. 45,000 per month

(HRA depends on place of posting, so salary may vary)

SBI PO:  This exam is conducted for recruitment of Probationary Officer (PO)/Management Trainee (MT) for State Bank of India. The revised starting salary of a PO is Rs.23700 (four additional increments will be applicable) in the pay scale of 23700-980/7-30560-1145/2-32850-1310/7-42020.

  • Basic Pay: Rs. 27620.00
  • Dearness Allowance (DA): Revised DA for the quarter November 2015 to January 2016 is 39.80% of the basic pay.
  • CCA: 4%, 3% or 0% depending on the place of posting
  • Special Allowance: It is 7.75% of the basic pay.
  • CTC: Rs 9.50 lakh (at metro cities with bank leased accommodation facility)

IBPS PO: IBPS PO exam is conducted for the recruitment of Probationary Officer (PO)/ Management Trainee (MT) in 21 Nationalized Banks across India. In most of the Public Sector (PSU) banks, the salary of a PO is almost the same. But, CTC varies from bank to bank and place of posting.

  • Basic Pay: Rs. 23700
  • Annual Increment: Rs. 980 (Applicable for 7 years)
  • Dearness Allowance (DA): Revised DA for the quarter November 2015 to January 2016 is 39.80% of the basic pay.
  • Special Allowance: It is 7.75% of the basic pay.
  • House Rent Allowance: 9.0% or 8.0% or 7.0% depending upon metro cities, big cities and other locations
  • City Compensatory Allowance: 4% or 3 % or 0% depending on place of posting
  • CTC: Rs. 5.64 lakh (without leased accommodation)

Perks – Nationalised Banks and SBI

Let’s read further to know the perks offered by Nationalized Banks and SBI.

PerksNationalized BanksSBI
AccommodationAvailable to a bank PO in lieu of HRA. The lease amount varies from bank to bank and place of posting.Leased accommodation ranges from Rs. 8,000 in ‘C’-category cities to Rs. 29,500 in Mumbai
Medical AidA fixed annual amount i.e. Rs 8000/- p.a.100% for self and 75% for family

 

RBI GRADE ‘B’

This exam is conducted for recruitment of Grade-‘B’ officers in the Reserve Bank of India.

  • Basic salary of a PO is Rs. 21,000/- p.m. in the scale of Rs.21000-1000-30000-EB-1000-32000-1100-36400. Other components of salary include DA, Local Allowance, HRA, Family Allowance, and Grade Allowance.
  • Currently, monthly gross emoluments are Rs. 47,855 (approximately).
  • Total pay and allowances offered to a Grade ‘B’ officer, considering cost of living in Mumbai, sums up to Rs. 13 LPA (approximately).

Note: The above-mentioned structure for the salary of a PO is as per bank norms.

Among IBPS PO, SBI PO and RBI Grade-‘B’, RBI Grade-‘B’ lists the highest figure for the salary of a PO in the banking sector. But, SBI PO and IBPS PO are equally rewarding, thereby generating vast employment opportunities across the country. It’s time to start preparing for your dream banking job. Kickstart your bank preparation now! You can enroll for CL’s Banking programs or take go through the revolutionary new eBook Packages to streamline your preparation.

All the best!

Team CL

 

NO COMMENTS

LEAVE A REPLY