Job Profile & Salary Structure of PO & Clerk in Public Sector Banks

There are a total of 18 Public Sector Banks (PSBs) in India apart from 1 state owned payment bank. Every year, all major Public Sector Banks conduct examinations for Clerks (Clerical), Specialist Officer (SO), Probationary Officers (PO) and Management Trainees (MT) through Institute of Banking Personnel Selection (IBPS). 

The Banking Services Recruitment Boards and banks themselves release notifications for entrance examinations for Probationary Officers and Clerks.  The section process consists of written test and interview. 

Banking jobs are highly sought-after jobs by youngsters as it offers fruitful career options and job security.  Many youngsters aspire to get into PSBs and every year, lakhs of aspirants appear for these exams. Candidates who clear the exams are admitted into various nationalized banks across India. 

In this article, we will take a look at the Job Profile and Salary Structure of POs and Clerk’s in PSBs. 

Job profile of POs in Public Sector Banks

Across all public sector banks in India, the job profile of POs is pretty much the same. Take for instance, India’s largest PSB which is State Bank of India (SBI), and the Reserve Bank of India (RBI).

A bank PO’s post is an Assistant Manager Level of Scale 1 in a bank. Once selected, a PO is given intensive training at the Institute of Banking Management. The training is for two years after which they join as an Assistant Manager of a branch. The duties of a PO include general banking duties and administration, such as cash transactions, cash management, etc. 

Responsibilities of a Bank P.O.

The PO must try to increase bank business, such as loans, cash flow, etc. They should also work as a public relations officer, apart from handling customer grievances and address problems like bank services, etc. 

After they get used to the normal functioning of the bank, they are given more work based on their personal skills and aptitude, such as marketing, loan processing, investment management, etc. As the PO gains more experience in their work, they will also be given managerial responsibilities such as supervising the work of clerks, managing cash balance and taking decisions in the interest of the bank. 

Typically, a PO must verify all the work a bank clerk does. S/He also takes care of loan-related documents and visits the sites of people taking loans. 

They also issue ATM cards, demand drafts and cheque books. A PO should be aware of all the recent developments related to the bank and read all the circulars regarding the decisions of the management.

When compared with other government jobs, the career growth prospects of a bank PO are very high. If a PO who excels at work and is a consistent performer can quickly climb the ladder of success via promotions.  

Salary structure of POs

Given below is the salary structure breakdown offered by PSUs

Basic Pay: This is the biggest chunk of one’s salary and is taxable under Section 17 of Income Tax. One’s Employee Provident Fund (EPF) and House Rent Allowance (HRA) are linked to the Basic pay. 

Dearness Allowance (DA): As DA is given to employees to protect against the price rise in a particular financial year. DA is calculated twice every year, in January and in July. 

House Rend Allowance (HRA): It is a house rent allowance paid by employer to meet tax payer rent expenses and this amount is tax free up-to certain extent. HRA will vary depending on where one is posted. 

Special Allowance: This allowance is linked to performance and is paid over and above one’s basic pay.

Compensatory City Allowance (CCA): Allowance for covering the cost of living in a city where expenses are very high. 

Now let’s look at the salary structure of SBI and IBPS specifically. 

SBI Bank PO Salary 2019

At present, the basic pay of a PO in SBI is 27, 620/-, the scale being 23700-980/7-30560-1145/2-32850-1310/7-42020. 

A PO also receives allowances such as House Rent Allowances, Dearness Allowances, City Compensatory Allowance, Travel Allowance, Medical and other allowances.

The range of a PO’s annual salary is between 8.20 lakhs to 13.08 lakhs

Benefits also include 100% medical insurance for PO and 75% for family members, cashless medical treatment in some hospitals in the country, newspaper allowance, books and magazine allowance, petrol allowances, house maintenance allowances, telephone bill reimbursement, entertainment allowances, concessionary interest rates for house loan, car loan and personal loan. 

IBPS PO Salary 2019

The IBPS is tasked with recruiting candidates for public banks ever year. The IBPS PO is the first role assigned to the selected candidates. 

The basic salary is 23,700/- and the gross is around 38,703/-

The other salary components include:

Description  Pay Scale 

(in ₹)

Basic Pay  23,700/-
DA 10,163.63/-
HRA 2,133/-
CCA 870/-
Medical  8,000/-
Petrol 3,000/-
Entertainment 500/-
Newspaper 300/-
Telephone 400/-
Canteen Subsidy 400
Pension Contribution 2,500/-
Gross Annual CTC (inclusion HRA, exclusion: leased accommodation) 5, 57,640/-

Clerks in Nationalised Banks

A bank clerical job is an entry level job. After the nationalisation of banks in India, the success of a bank has solely depended on customer service. In this area, a bank clerk plays a pivotal role as this is a front office job where the person directly handles all the customers’ requirements. In short, a bank clerk ensures that the best customer care is provided to their customers.

A good bank clerk should be:

Friendly, have knowledge of banking operations, its products and be able to guide customers; s/he should be pleasant and courteous; be accurate and fast in their work and offer prompt and punctual service. 

Let’s now look at the work profile and salary structure for the clerical position in banks.

Job description of a public sector bank clerk:

A bank clerk is expected to be attentive to customers and their requirements. S/he should ensure that customers have complied with the KYC guidelines when opening Savings or Current Accounts.

Responsibilities of a bank clerk

  • Explain the chief features of the bank’s products to customers. 
  • Maintain and update customers’ accounts. 
  • Help people with cash transactions 
  • Follow up with the customer in case of advances.

Pay scale

The current salary of a bank clerk is based on the revisions provided by the 7th Pay Commission. Apart from basic pay, the clerk also enjoys a lot of perks that is provided by the bank such as the pension plan, rent allowance etc. 

Now let’s look at the salary structure of SBI and IBPS specifically. 

SBI Bank Clerk Salary 2019

SBI recruits candidates as SBI Junior Associates. They work as SWO (Single Window Operator) where they are responsible for day-to-day activities of the bank.  

The salary of Junior Associates will be different for different cities. For example, the salary of an SBI clerk will be around 25,000/- 

Basic pay: The pay scale of a clerk in any nationalised bank in India draws a salary of 11765-655/3-13730-815/3-16175-980/4-20095-1145/7-28110-2120/1-30230-1310/1-31450.

The perks and benefits clerks enjoy include Dearness Allowance, House Rental Allowance, stable job, flexible timings, financial stability, medical insurance, good work environment, medical insurance, provident fund and pension. 

IBPS Bank Clerk Salary 2019

The IBPS clerk can be placed in allotted various departments as an Account Clerk, Loan Clerks, Data Entry Clerk or Office Clerk, etc.  

Basic pay: The basic pay of an IBPS clerk is around 11, 765

The pay scale of an IBPS clerk is 11765-655/3-13730-815/3-16175-980/4-20095-1145/7-28110-2120/1-30230/1310-1-31540.

They get an annual increment of 815 after three years and will go up to .20, 095 after four years with an annual increment of 11, 045 Rupees. 

They also get various allowances such as Travel Allowance, HRA, DA, Medical Allowances etc. They can also apply for promotions after a period of two years. 


Both these positions are most sought due to the career growth prospects and job security that these jobs offer.

Leave a Reply

Your email address will not be published. Required fields are marked *