Career as a bank probationary officer

Although the eligibility criteria to apply are considered straightforward, the selection process and the interview require candidates to prepare well, writes Vijay Prakash Srivastava.

Every year, thousands of young people join India’s public sector banks (PSBs). These recruitments are largely for officers and the clerical cadre. A fresh officer selected to work in general or operational banking roles is known as a probationary officer(PO). Officers’ vacancies in these banks are also filled through promotion from the clerical cadre. Probationary officers are those who begin their career directly as officers in banks.

Although the eligibility criteria to apply are considered straightforward, the selection process, comprising preliminary and main examinations, as well as an interview, requires candidates to be highly sincere and consistent in their preparation.

The recruitment process for the post of PO is conducted by the Institute of Banking Personnel Selection, commonly known as IBPS. The State Bank of India conducts its own process. Candidates selected in the IBPS process are allocated to different public sector banks based on the vacancies available with each bank. A PO’s job comes with an all-India service liability. However, banks seek candidates’ preferred choice of states/UTs for initial posting and try to accommodate them, subject to opportunities.

The probation period for a PO is typically two years. Those who perform satisfactorily during this period are confirmed in service. However, adopting a liberal approach, banks now extend various employee benefits (such as housing and medical) during the probation period itself.

All PSBs place strong emphasis on training to develop the skills of their employees. Initially, probationary officers attend induction or orientation training at the relevant bank’s training centre. This classroom programme introduces new employees to the bank’s culture, policies, and service regulations, and includes sessions on banking subjects, the Know Your Customer policy, soft skills, customer service, and other relevant topics. In a few banks, probationary officers are first asked to report to the training centre and, after attending the above training, are sent to bank branches for on-the-job training. On-the-job training prepares a new officer for regular assignments. Under this, officers are rotated through all basic banking functions, such as deposits, loans, and cash management.

Branches are the main operating units of banks, and it is considered necessary for officers to get exposed to all important functions in branch banking. Some parts of the training may also take place at the bank’s administrative office. The training in administrative offices is brief and intended to provide knowledge of the control mechanisms and compliance regulations that banks must follow. Almost every PSB now has an e learning platform, and a PO may be asked to complete certain modules to be considered for confirmation.

A probationary officer belongs to Junior Management Grade Scale I, also known as Assistant Manager. After Junior Management, the next levels are Middle Management, Senior Management and Top Executive Grade. There are seven levels of officers in PSBs- Assistant Manager, Senior Manager, Chief Manager, Assistant General Manager, Deputy General Manager and General Manager. A few banks have created the position of Chief General Manager, which is positioned above General Manager. Executive Director and Chief Executive Officer are Board-level positions, appointments to which are made by the central government from the pool of eligible candidates. Nearly all those occupying the positions of ED or CEO had begun their career as a PO.

Banks reach out to their customers through their network of branches. A PO will first work as a junior officer in a bank branch and gradually grow in hierarchy. Banks offer numerous opportunities for advancement, and promotion policies have been highly relaxed when it comes to the requirement of length of service. To illustrate, till about 15 years ago, a minimum of seven years’ service was required for a scale I officer to get promoted to scale II. Now it’s possible in just two years. Some rural services may be included in the criteria. With the relaxations, now many EDs and MDs have reached their positions in their forties or early fifties.

You may get to head a small bank branch soon after your confirmation. In bigger branches, you’ll work as a deputy manager or a functional in-charge. These functions may be related to deposits, loans, foreign exchange, etc. With a promotion, you may be asked to head large and extra-large branches. An officer of the rank of Deputy General Manager heads bank branches.

The administrative setup of banks comprises regional or zonal offices and a head office. You may also have the opportunity to work at these offices. With adequate seniority, one may be posted as a regional or zonal manager and later as a general manager, performing the role of head of a particular department at the head office. 

While working in the banking sector, one may develop expertise in a particular area. Risk management, information technology, international business, marketing, and compliance are a few such areas. The bank may offer you the opportunity to work in your area of expertise, and officers may also express their preference to be considered by the authorities. One posting in a bank usually lasts for three to five years, after which you may be transferred to take up a new assignment.

Many PSBs have their branches abroad to which they send officers from India. These foreign postings are much sought after. One may also work in audit, training functions, and subsidiaries of the respective bank.

The onset of technology, increased competition, and growing customer expectations have magnified the challenges in a banking career. However, these challenges come with a host of opportunities for growth and fulfilment to those who are ready.

(The author is a Mumbai-based professional and a freelance writer)