State Bank of India (SBI PO) 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.8.00 Lacs per annum. This includes leased accommodation of Rs.20,000/- on metro cities.
WHY SBI PO?
- 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/-
PAY: The starting basic pay is 16,900/-(with 4 increments) in the scale of 14500-600/ 7-18700-700/2-20100-800/7-25700 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 compensation per annum at Mumbai is around Rs. 8,40,000/-. The breakup of monthly compensation is as under:
- Cash Component – 34,320/-
- 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
Note: The salary scales are under revision with effect from November 2012. It means, bank will pay higher salary than the present above mentioned salary. Bankers have been waiting the salary revision and hope it would be approved by next year. The pending hike in salary will be paid as arrears since Nov. 2012.
Note: The candidates should not get confused by the amount of Salary shown by SBI as Rs 69000/- 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 their. Basically, the salary difference between SBI and other PS Banks is that of 4 increments i.e. Starting Basic Pay will be Rs 16900/- in SBI, whereas in other PS Banks it is Rs145000/-. (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 Rs2000/-. Thus, starting salary in SBI is about Rs 4400/- more than other PSU Banks.
Pay Scale: The starting basic pay of a Probationary Officer is Rs 16,900/- (with 4 increments) in the scale of Rs 14500-600/7-18700-700/2-20100-800/7-25700.
Pay scale is the range of salary from the starting basic to last basic in that particular grade, for example the starting basic salary of a JMGS Officer is Rs. 14500.00 and the last basic salary of a JMGS Officer is Rs. 25700.00. In SBI PO there is a provision of four additional increments for Probationary Officers at the time of joining hence the starting basic salary of a SBI Probationary Officer (SBI PO)is Rs. 16900.00 (Rs. 14500 + four increments i.e. Rs. 600 X 4 = Rs. 16900.00).
Dearness Allowance: Apart from the basic salary a Probationary Officer is also eligible for Dearness Allowance or D.A. which is currently 80.25% of basic salary hence one will also get Rs. 13562.25 as DA, apart from the basic salary of Rs. 16900.00
Dearness allowance is being decided by the IBA from time to time, the revision in DA is based on an index and the rate is being revised keeping in mind current inflation rate and economic conditions. The Dearness Allowance is being revised four times in a year or on a quarterly basis.
HRA and CCA: Apart from the Basic salary and Dearness Allowance a Probationary Officer is also entitled for House Rent Allowance (HRA) and City Compensatory Allowance (CCA). While the HRA ranges from 7.50% to 15% of the basic salary depending upon the location of the posting. CCA value also depends upon the place of posting of the Officer.
Perks and Allowances: In SBI PO there are also various perks such as petrol allowance, newspaper allowance, entertainment allowance, servant allowance etc. the lump sum rupee value for all such perks is in the range of Rs. 6000.00 – Rs. 8000.00 depending upon the place of posting.
Lease Rent Facility: Probationary Officers are also entitled for attractive Lease Rent Facility. An Officer is entitled for Leased accommodation ranging from Rs 8000.00 in ‘C’ category Centers to Rs 29500.00 in Mumbai Centre.
Lease rent facility is a facility provided by the bank in which the house rent of the house of the Officer is directly paid by the bank to the landlord within the entitlement of Officer.
Furniture and Fixtures: Probationary Officers are also entitled for purchasing Furniture and Fixtures of Rs. 90000.00 for their home. The bank also pays annual maintenance perks of Rs. 10000.00 for the maintenance of Furniture purchased by the Probationary Officer.
Medical Facility: Medical facility in sbi po is also very attractive. Medical Aid for self is 100% and for the family is 75% it means that 100% of your medical bills will be reimbursed by the bank for you and 75% for your family members, subject to the bank norms.
Provident Fund for SBI PO: The officers are required to make 10% of their basic pay as contribution to Provident Fund and the Bank also makes matching contribution to the Employees Provident Fund.
Concessional Loans to Bank Officers: Bank also provides concessional interest rates for Housing/Car/Personal Loans.
Newspaper Reimbursement: A fixed monthly amount is paid towards the cost of one newspaper.
Maid Allowance: A fixed monthly amount is paid toward the allowance of the maid, which is generally Rs. 50/day.
Package or CTC of the Probationary Officer: Now-a-days term of salary package or CTC has become a very popular term and everybody is interested in knowing his or her salary package. As per the rough estimates we can safely say that the salary package of a Probationary Officer of SBI PO in a city like Mumbai is around Rs. 8 – 9 lakhs.
For those who are not aware of the salary package or CTC term we would like to tell that a salary package or CTC (cost to the company) is the total benefit one is drawing from the employer.
Salary Revision of Bank Employees: In the end we will also tell you that the salary of Bank Employees will rise further as the salaries are due for revision from November 2012. The salary of Bank employees are revised after every 5 years.