Must Read : SBI PO Salary Structure

State Bank of India is not only the biggest bank in India, It is also the bank which pays the highest salary when it comes to a Probationary Officer.

Starting CTC of a PO joining SBI will be around Rs.12.00 Lacs per annum. This includes leased accommodation of Rs.20,000/- on metro cities.


  • No service bond like other banks
  • Highest salary
  • Maximum opportunities for career growth
  • Possibility to work outside the country
  • Leased accommodation upto Rs.29,500/-

SBI PO Salary

According to this year’s notification regarding SBI PO Salary,

  • the pay scale for SBI PO is:`23700-980/7-30560-1145/2-32850-1310/7-42020 applicable to Junior Management Grade Scale-I.
  • Presently, the starting basic pay is `27,620/- (with 4 advance increments).
  • Not only this, The official will also be eligible for D.A, H.R.A/Lease rental, C.C.A, Medical and other allowances & perquisites as per rules in force from time to time. Allowances may vary depending upon the place of posting.
  • The total compensation per annum would be a minimum of `7.55 lakhs and maximum of `12.93 lakhs depending on place of posting and other factors.
  • Also, SBI plans to offer SMART Compensation Package which would enable candidates a choice to monetize specific elements of the salary package

SBI PO Salary Structure

As said above, recently, the starting basic pay is Rs. 27,620/- (with 4 advance increments) in the scale of Rs. 23700-980/7-30560-1145/2-32850-1310/7-42020 applicable to Junior Management Grade Scale-I. The official will also be eligible for D.A, H.R.A/Lease rental, C.C.A, Medical and other allowances & perquisites as per rules in force from time to time. The total compensation per annum would be a minimum of Rs. 7.55 lacs and maximum of Rs. 12.93 lacs depending on place of posting and other factors.

SBI plans to offer, subject to necessary approvals, a SMART Compensation Package which would enable candidates a choice to monetize specific elements of the salary package.

The break up of monthly compensation is as under:

Cash Component : 36,046/-
Bank’s contribution to PF : 1,690/-
Housing (Lease Rental) : 29,500/-
Perquisites (Conveyance, Newspapers, Entertainment
allowance, House & Furniture Maintenance etc. 4,130/-
In addition, the officers are also entitled to other benefits like –
(i) Medical Aid for self (100%) and for family (75%)
(ii) Home Travel Concession/Leave Fare Concession
(iii) Concessional Interest Rates for Housing/Car/Personal Loans

The salary scales are under revision with effect from November 2012.

SBI PO SALARY Cash in Hand = Rs. 38000/-

Other benefits:

Bank’s contribution to PF = Rs. 1690/-

Housing (Lease Rental) ranges from 8000-29500.

Other allowances including Newspapers, Entertainment allowance, Conveyance etc.) = Rs. 4130/-

The main difference in salary of SBI Probationary Officer and other Public sector bank PO is that SBI gives more basic pay than them. SBI gives Rs. 2400 more in basic pay. As other banks give Rs. 14500 as basic pay, SBI PO gets Rs. 27620 as basic pay. So it means that, an SBI PO gets more Dearness Allowance and other allowance which are based on Basic pay. Thus, the starting SBI PO Salary is about Rs 4400/- more than other Public Sector Banks.

SBI PO Salary at Metro cities

At present, the monthly emolument at Mumbai will be approximately Rs 72000/- i.e. Rs. 108000/- per year depending on place of posting inclusive of all benefits (total compensation in year / 12). This is not fully in cash as it includes Rs. 29500 as facility to get a house in Mumbai if you are posted there.

The SBI bank probationary officers are required to make 10% of their basic pay as contribution to Provident Fund and 10% of Basic Pay and D.A. towards pension scheme and Bank also makes matching contribution.

The salary difference between SBI and other PS Banks is that of 4 increments i.e. Starting Basic Pay will be Rs 27620/- in SBI, whereas in other PS Banks it is Rs 14500/-. (Rs. 2400/- more as basic in SBI) The difference becomes bigger as DA is payable on this basic pay. This also works out to be about Rs 2000/-. Thus, starting salary in SBI is about Rs 4400/- more than other PS Banks.

 SBI PO Salary Allowances

SBI PO are eligible for reimbursement of various perquisites, Provident Fund, Gratuity, Pension under New Pension Scheme (Defined Contribution Benefit Scheme), Medical, Leave fare and other facilities, as per the instructions of the Bank issued from time to time.

Some of the allowances that the SBI bestows on its Probationary Officers are:

Dearness Allowance (DA)

This allowance is revised on a quarterly basis in the months of February, May, August, and November. It is based on the Consumer Price Index (CPI) as declared by Government of India. When inflation is high, DA goes up and when inflation falls, DA goes down. At the moment it is over 100% of the Basic Pay.

Housing Allowance (HRA)

This compensation includes leased rental accommodation where the employees get housing rent as a part of their package. If due to some reasons, SBI isn’t able to provide accommodation to its PO, it compensates by providing a housing allowance. The nature of this allowance becomes more prominent as the employee moves up the career ladder.

Medical Benefits

SBI takes care of the health and well-being of its employees and their families by taking care of the medical expenses of its employees. Medical benefits (100% for the employee and 75% for dependent family members) form a key component of the overall package. The Bank also provides group insurance that is greater than the compensation package. Moreover, the bank has tie-ups with some of the best medical facilities around the country and employees are eligible for cashless treatment in these places.

Leave Policy

SBI Probationary Officers are provided with attractive leave policies, which includes 33 days of privilege leave and 12 days of casual leave annually along with sick leave and maternity leave. Women and single men with children or aged parents have the provision to take a sabbatical leave of up to 2 years.

Travel Allowance

The employees get leave travel concession to visit places within India. Holiday homes and Bank’s guest houses are available for the employees at cities and tourist destinations.

Monthly Benefits

Apart from SBI PO salary, the officers in SBI are eligible for various perquisites. Newspaper allowance, petrol allowance, entertainment allowance, house maintenance allowance, books and magazine allowance, briefcase allowance, reimbursement of telephone bills are some of the perquisites provided by the bank to the employee. The total monetary value of perquisites in the bank comes to around Rs 5000/- on a monthly basis. The clerks in SBI are also eligible for petrol allowance, entertainment allowance, newspaper grant etc. on a monthly basis.

Miscellaneous Benefits

As employees, the Bank provides Housing Loan, Car Loan & Personal Loans at a concessionary rate of interest. Also, the bank recognises and promotes merit by providing scholarships to the meritorious children of all employees. Pension by the bank helps the employee lead a comfortable life post retirement.

SMART Compensation Package

SBI plans to offer, subject to necessary approvals, a SMART Compensation Package which would give employees the choice to monetize specific elements of the salary package.

Note: Apart from the above salary, perks and allowances discussed above a SBI PO also gets concessional loans, LTC and HTC facility, furniture allowances, scholarship for kids, study leave and various other benefits which bank extends from time to time

Broad Cost to Company (CTC) for Bank PO:

Basic Pay 27620.00 331440.00
Special Allowance 2072.00 24864.00
DA 13257.00 159084.00
CCA 870.00 10440.00
Transport allowance 0.00 0.00
Total without HRA 43819.00  
HRA 2500.00 30000.00
Gross with HRA 46319.00
Medical aid unlimited unlimited
Entertainment 500.00 6000.00
Newspaper 300.00 3600.00
Petrol 3000.00 36000.00
Telephone 400.00 4800.00
Others 400.00 4800.00
Gross Annual CTC (with HRA but without leased accommodation)   611028.00

The CTC will vary from bank to bank and place of posting. In this calculation only approximate figures have been taken at some places.


Important Doubts Regarding SBI PO Salary:

Will I get any salary during my Probation??

Yes,All selected candidates for officer position will be on a probation period of two years. You will get the same salary given above during probation as well.

Will I really get 12 lakhs Rs per year as a salary in hand??

Well this is the most doubtful question. Not your inhand salary, but yes the total compensation can go upto 12 lakhs per annum which includes

  • Your basic salary
  • Dearness Allowance
  • City Compensatory Allowance
  • Tax and PPF
  • Allowances like Petrol, Newspaper, Entertainment, Tea and Coffee.
  • Leased rent Accommodation (Or Staff Quarter if available at your place of posting)

Apart from the basic pay, the compensation amount of other things varies as per place of posting, and thus Overall Compensation will come inside the bracket of 8-12 lakhs.Start Preparing for SBI PO Now!

Do I have to pay for training like the case with various Manipal Courses??

No, not even a single penny. Instead when you are undergoing your classroom training, even then you will be getting the full salary. (LEARNING AND EARNING AT THE SAME TIME)