The Local Bank Officers (LBO) and Circle Based Officers (CBO) posts are permanent jobs in the Public Sector Banks in India. Many banks like Bank of Baroda (BOB), Indian Overseas Bank (IOB), Punjab and Sind Bank, and Union Bank of India are hiring LBOs and CBOs in 2025 with a larger number of vacancies. Bank of Baroda is hiring 2500 LBOs in 2025 with a good salary. Many candidates preparing for banking exams are curious to know about these posts. These recruitments are based on the regional strategy of banks to provide better customer service in a particular region. These Officers are not eligible for frequent transfers, and they are provided training in the local language of the state. Continue reading below to know more about CBOs and LBOs’ roles and responsibilities in banks and how they differ from other posts.
What are Local Bank Officers?
Local Bank Officers, or LBOs, are bank employees who work at the branch level and are responsible for a variety of tasks related to customer service, operational efficiency, and business development within their designated branch. They act as the primary point of contact for customers, handling transactions, providing financial advice, and ensuring the smooth functioning of the branch.
What are Circle Based Officers?
Circle-Based Officers (CBOs) in the State Bank of India (SBI) are essentially Assistant Managers with a focus on managing core branch functions and operations within a specific geographic circle. They are responsible for a range of tasks crucial for the smooth functioning of the bank at the branch level. The candidates who are working as an Officer in the Scheduled Commercial Banks or as an Officer in the RRBs are eligible to apply for the Circle Based Officer role in SBI.
Why Banks are Hiring Local Bank Officers?
The Local Bank Officers are recruited by most of the major banks, and they are responsible for day-to-day operations and efficiency in the local area branches of the bank. The major reasons for hiring Local Bank Officers (LBOs) are provided below.
1. Better Local Understanding
- Local candidates understand the region’s language, culture, and economy.
- They can relate better with rural and semi-urban customers.
- Helps build trust and long-term relationships with customers.
2. Faster Implementation of Government Schemes
- Schemes like PMJDY, PM-Kisan, Mudra Yojana, and KCC require district-level coordination.
- Local officers coordinate more effectively with local administration, farmers, SHGs, and beneficiaries.
3. Improved Credit Monitoring
- Local officers know the borrowers’ background and financial behavior, enabling better:
- Credit risk assessment
- NPA control
- Recovery processes
4. Reduced Transfer Issues
- Officers posted in their home state or region are more likely to:
- Stay longer in one place
- Be emotionally and socially invested
- Avoid seeking frequent transfers
This lowers HR costs and improves branch-level continuity.
5. Enhancing Financial Inclusion in Rural Areas
- Local officers can mobilize SHGs, farmer groups, and MSMEs more efficiently.
- They help increase the use of banking products like:
- Micro loans
- Insurance
- Pensions (APY)
- Digital banking (UPI, AEPS)
6. Better Coordination with Local Governance
- Local Bank Officers play a key role in:
- District Credit Committees (DCC)
- Financial Literacy Campaigns
- Village adoption schemes
Why Banks are Hiring Circle Based Officers?
The Banks usually hire Circle-based Officers for Local Circles, and it is one of the banking strategies to improve work in local areas. The major reasons for hiring Circle-Based Officers are provided below.
1. Local Talent for Local Circles
- CBOs are posted in their home state/circle, which improves:
- Language familiarity
- Cultural alignment
- Customer interaction
2. Reduce Transfers
- Since CBOs are circle-restricted, it reduces transfer-related discontent.
- Ensures employee stability and better customer service at the local level.
3. Strengthening Mid-Level Management
- CBOs are experienced officers hired for direct entry at Scale I or II.
- They reduce the pressure on existing PO/promotee pipelines.
- They help to manage branches, achieve business targets, conduct audits, and ensure compliance.
4. Decentralized Banking Strategy
- Allows banks (especially SBI) to empower regional circles.
- Enhances decision-making at local levels for credit, recovery, and performance improvement.
Difference Between LBO, CBO, PO Posts
A complete classification of similarities and differences between Circle-based Officers, Local Bank Officers, and Probationary Officers is provided in the table below.
| Criteria | Local Bank Officer (LBO) | Circle Based Officer (CBO) | Probationary Officer (PO) |
|---|---|---|---|
| Purpose of Post | District-level coordination with govt. & credit flow | Mid-level officer for local/circle-specific operations | All-rounder officer trained for managerial roles |
| Recruitment Mode | Usually via internal promotions or state-based hiring | Lateral recruitment (like SBI CBO) for experienced staff | Through competitive exams (IBPS PO, SBI PO) |
| Posting Location | Specific districts, often rural/semi-urban | Within assigned circle/state only | Can be anywhere in India |
| Eligibility | Internal staff or local candidates with banking exposure | Minimum 2 years’ banking experience | Graduates (freshers) eligible |
| Work Nature | Coordinates with district admin; implements govt schemes | Handles branch operations, credit, recovery | Learns full operations through training & department rotation |
| Probation Period | Generally not applicable | Usually 6 months to 1 year | Typically 2 years |
| Transfer Policy | Rare – stays in the same district | Rare outside home circle | Frequent transfers across regions |
| Job Focus | Financial inclusion, rural development, PSL | Customer service, audit, business growth in the circle | All-round: branch ops, loans, marketing, HR, etc. |
| Career Growth | Moves to regional roles or coordination officers | Branch Manager → Regional Manager → AGM, etc. | PO → Manager → AGM → DGM → GM |
| Exam Pattern | Not standard; internal assessments or special recruitment | No prelims; direct selection based on experience + test | Prelims + Mains + Interview |
| Salary Level | Around Scale I / II | Usually starts at Scale I or II | Starts at Scale I |
Summary
LBO = Local coordination expert → Focused on government scheme implementation and district credit planning.
CBO = Circle-restricted officer → Experienced hire for stable, localized operations.
PO = Entry-level officer → Fresh recruit trained across departments for future leadership.
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FAQs
The local bank officers are those who manage day-to-day banking operations, like customer service, and ensure operational efficiency.
The local bank officers are bank employees who handle frontline customers and process loans for eligible customers.
The basic initial pay of LBO in Bank of Baroda is Rs. 48,480.
PO is an entry-level role for fresh graduates, while CBO requires a minimum of two years of experience as an officer in a scheduled commercial bank or regional rural bank
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