Salary posts about bank PO jobs tend to quote one big in-hand figure and stop there. That number is real, but it is a snapshot of month one. The decision to spend a year or two preparing for IBPS PO or SBI PO should rest on a longer view: what the pay scale looks like, how promotions actually happen, and what the job asks of you in return.
This post covers that longer view. The pay scales below are from the 12th Bipartite Settlement and the officers' joint note that came with it, effective from 1 November 2022 and signed in March 2024. They are what public sector banks pay as of October 2026. Where a figure depends on city, bank or DA revision, we say so and give a range rather than a single number. For the official word, read your bank's notification and the PO notification on ibps.in or sbi.co.in/careers.
Where the pay comes from
Public sector bank pay is not set by the Central Pay Commission. It is negotiated between the Indian Banks' Association (IBA) and the employee and officer unions, roughly every five years, in what is called a bipartite settlement. Officers' pay is fixed in a joint note signed alongside it.
The current one, the 12th Bipartite Settlement, runs from November 2022 to October 2027. The next revision is due from 1 November 2027. As reported in April 2026, the Finance Ministry asked public sector banks to begin negotiations for the 13th settlement and finish within 12 months, to avoid the long delay of last time (the 12th was signed about 16 months after it took effect, with arrears paid later). Nobody knows yet what the 13th settlement will contain. Any article giving you a figure for it is guessing.
SBI is an IBA member and follows the same officer scales for its POs. Its notification states a starting basic of ₹48,480, the same as IBPS banks.
Officer pay scales (as of October 2026)
These are the officer scales that took effect from 1 November 2022. We took them from a published scale sheet of an institution that follows the same IBA-linked scales; your bank's own circular is the authority.
| Scale | Usual designation | Pay scale (₹) |
|---|---|---|
| I (JMGS-I) | Assistant Manager / Officer (where a PO starts) | 48,480-2,000/7-62,480-2,340/2-67,160-2,680/7-85,920 |
| II (MMGS-II) | Manager | 64,820-2,340/1-67,160-2,680/10-93,960 |
| III (MMGS-III) | Senior Manager | 85,920-2,680/5-99,320-2,980/2-1,05,280 |
| IV (SMGS-IV) | Chief Manager | 1,02,300-2,980/4-1,14,220-3,360/2-1,20,940 |
| V (SMGS-V) | Assistant General Manager | 1,20,940-3,360/2-1,27,660-3,680/2-1,35,020 |
| VI (TEGS-VI) | Deputy General Manager | 1,40,500-4,000/4-1,56,500 |
| VII (TEGS-VII) | General Manager | 1,56,500-4,340/4-1,73,860 |
Designations vary a little between banks. Above Scale VII are Chief General Manager and then Executive Director and MD & CEO, which are appointments made through a separate government process, not regular promotions.
Reading a scale string
Take Scale I: "48,480-2,000/7-62,480". It means you start at a basic of ₹48,480 and receive an annual increment of ₹2,000 seven times, reaching ₹62,480. Then increments of ₹2,340 twice to ₹67,160, then ₹2,680 seven times to the top of ₹85,920. So a PO who stays in Scale I for several years still sees the basic rise every year, before any promotion.
From basic pay to in-hand pay
Basic pay is only part of the salary. A PO's monthly pay typically includes:
- Basic pay: ₹48,480 at joining.
- Dearness allowance (DA): a percentage of basic, revised every quarter for bank employees in line with the consumer price index. It changes several times a year, so we are not quoting a current percentage.
- Special allowance: a fixed percentage of basic for each scale under the settlement (reported as 26.5 per cent of basic for Scale I), with DA payable on it.
- House rent allowance or leased accommodation: depends on the city category and the bank's policy.
- Other allowances: such as learning allowance, local or hill allowances in some postings, and reimbursements set by the bank.
Deductions include the employee's NPS contribution (for those who joined after the old pension scheme closed), income tax and a few smaller items.
Approximate result, as of October 2026: published estimates for a newly joined PO put the monthly gross at roughly ₹85,000 to ₹1,00,000 depending on city, and the in-hand at roughly ₹70,000 to ₹85,000. These are approximations from coaching-site calculators and notifications, not a payslip we have checked, and they move with every DA revision. SBI's own notification has in recent cycles quoted an annual cost-to-company figure for a metro posting; that number includes employer contributions and perquisites you do not receive as cash each month, so do not compare it with someone else's in-hand pay.
How a career actually moves
Probation
A new PO serves a probation period (two years is common; check your bank's terms), with on-the-job training across branch functions and usually some classroom training. Confirmation in service is subject to satisfactory performance and, in many banks, to clearing a certification exam. Some banks require a service bond at joining; read the notification for the amount and period before you accept.
Scale I to Scale II
Most banks set a minimum number of years in Scale I before you become eligible for promotion to Scale II. Two to three years is commonly cited, but the rule is bank-specific. Promotion usually combines a written test or an assessment of your performance appraisals, and sometimes an interview. In practice, many officers spend three to five years in Scale I, depending on vacancies and their own results in the promotion process.
Middle management (Scales II and III)
This is where most officers spend the bulk of their 30s. You may run a branch, handle credit appraisal, or work in a regional office. Each step again has eligibility years and a selection process. People who clear the JAIIB and CAIIB certifications from the Indian Institute of Banking and Finance often find it helps both with increments (banks have historically linked increments to these) and with promotion files. Check your bank's current policy.
Senior management (Scales IV and above)
Promotion to Chief Manager and AGM is more selective, with fewer posts at each level. Interviews and track record matter more, and so do postings outside branches, such as credit, treasury, risk or audit. Not everyone reaches Scale V. That is normal in any pyramid.
A realistic timeline
We are not going to give you "AGM in 12 years". Promotion speed depends on the bank, the number of vacancies in each year, your appraisals and your willingness to move. A fair general summary, which you should test against what serving officers in your target bank tell you: a steady officer moves up a scale every few years in the early part of the career, and the pace slows above Scale III.
What the job asks in return
The salary section of a notification does not mention these, but they matter:
- Transfers: officers are transferable across the bank's branches, often across states. Rural and semi-urban postings are normal in the first years.
- Hours: branch officers often work past closing time, especially at quarter and year ends.
- Targets: deposits, loans and the sale of third-party products such as insurance are part of branch life in most banks.
- Accountability: an officer who sanctions a loan carries responsibility for it.
None of this is a reason not to apply. It is a reason to know what you are signing up for. Many people find the work interesting and the pay fair for it.
How it compares
Bank PO pay at entry is generally higher than many central government Group B posts reached through SSC, though DA, HRA and allowances work differently and the comparison shifts with each pay revision. The central government's 8th Pay Commission was constituted in November 2025 and, as of the latest reports, had not submitted its recommendations. Compare the two tracks on work and posting as well as pay; our post on banking vs SSC does that.
Getting there first
The salary only matters if you clear the exam. IBPS PO and SBI PO both select on mains plus interview, with prelims as a filter. The IBPS PO guide and the RBI Grade B guide (a different, higher-paying officer track) cover the patterns. For practice, Pareeksha's full mocks are fixed papers, so your percentile is measured against everyone who sat the same paper. Full mocks and PYQs are part of Pareeksha Pro; see pricing.
FAQ
What is the starting basic pay of a bank PO in 2026? ₹48,480 a month in Scale I under the 12th Bipartite Settlement, for both IBPS banks and SBI. DA, special allowance and HRA are added on top.
Will the 13th Bipartite Settlement raise PO pay? It is due from 1 November 2027 and negotiations had been asked to start in 2026. The size of any increase is not known. Treat any specific figure you read now as speculation.
Do POs get a pension? Officers who joined after the old pension scheme closed are covered by the National Pension System, with contributions from both the employee and the bank.
How long until a PO becomes a Manager (Scale II)? Bank-specific. A minimum of two to three years in Scale I is commonly cited, and actual promotion often takes longer depending on vacancies and the selection process.
Is SBI PO pay different from IBPS PO pay? The scale is the same. SBI's allowances, perquisites and internal promotion rules are its own, so total pay and progression can differ somewhat. Read SBI's notification for its stated figures.
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