Internal Promotion

Promotion Process from Clerk to Officer Cadre in PSU Banks


Narendra Modi Govt. had announced that from January 1, 2016 there would be no interviews for central government jobs in Class-III and IV categories. The Committee of Secretaries chaired by Cabinet Secretary in its meeting held on November 13 had recommended discontinuation of interviews in PSU banks for junior level posts.

 Eligibility Criteria for the Promotion of Clerk to Officer Cadre in PSU Banks

  1. 1. All the candidates who wish to get promotion from Clerical to Officer in Public Sector Banks need to apply for thepromotion test and appeared for examination as well.
  2. Candidates who are working as a Clerk in any nationalised bank across the country would have to undergo their service for at least aperiod of two years in order to be eligible for promotion to Officer Cadre.
  3. There are two channels for clerical to Officer PROMOTION :-

(I) Normal/Seniority channel

(II) Merit/Fast track channel

These two channels are applied to individual candidates depending on their performance and experience in the banking services.

(I) Under Normal/Seniority channel the employee has to qualify written exam and on the basis of his experience and seniority in the services of bank he can be selected as Officer. In this channel process no JAIIB and CAIIB diploma is compulsory.

(II) Under Merit/ Fast track Channel: 2 year minimum service as a clerk with a JAIIB and CAIIB diploma conducted by Indian Institute of Banking and Finance (IIBF) is must with graduate/post graduate degree.

Benefits on Clerical to Officer Promotion: 

  1. 1. Clerical employee becomes aconfirmed employee as officerfrom first day of promotion.
  2. Need to serve Probation periodonly for 1 year as a PO.
  3. 3. Upon clearingJAIIB and CAIIB the candidates could get 3 increments(1 for JAIIB and 2 for CAIIB) and consequently their salary would be on the rise as well.
  4. Passing these examinations also allows the candidates to secure the home state retaining power after they get promoted.
  5. Eligible to get all officer cadre benefits from first Day of promotion and some benefits after completing their Probation Period.
  6. Mostly employees after promotion from clerical to officer retained in home state for posting.
  7. Eligible for Loans for higher quantum like Staff Housing Loan forOfficer is 50 Lakhs as compared to Clerks 30 lakhs and sub staff 20 Lakhs inIndian Bank.



  1. Dearness Allowance (DA): In Banks, DA is revised quarterly and is based on the CPI data as revealed by Government of India. The last Revised DA for the quarter of November and December, 2015 and January, 2016 is39.80% of the Basic Pay.

Since it depends on CPI, DA can go up with higher Inflation and vice versa.

  1. Special Allowance: In the latest revision, a special allowance has been added to the salary structure of Bank PO. And it is 7.75% of the Basic Pay.
  2. House Rent Allowance (HRA)This varies according to Bank PO’s place of posting and can be 9.0% or 8.0% or 7.0% depending upon metros, big cities and other locations.
  3. City Compensatory Allowance (CCA): This also depends on the place of posting and can be either 4% or 3 % or 0%.

Hence the total Salary (without HRA) of Bank PO becomes Rs. 35,700 – 36,570. While considering the HRA into account, it becomes Rs37,360 -38,700.


  1. Leased Accommodation:This facility is available to Bank PO in place of HRA. At some places, banks provide Official Bank Accommodation/Bank Quarter as leased accommodation. This amount is not available as cash component and will directly go to the house owner – you have got leased.
  2. Traveling Allowance:Few banks provide fixed Traveling Allowance whereas others allow reimbursement of petrol bills i.e. officer must own scooter, bike/ car at the place of posting.
  3. Newspaper Reimbursement:A fixed monthly amount is paid towards the cost of one newspaper.
  4. Medical Aid:A fixed annual amount is paid by most of the banks (Revised amount is Rs 8000/- p.a.)
  5. Benefits under New Pension Scheme.