LIC AAO vs Bank PO: Which is Better? Salary, Working Hours & Growth Comparsion

By BYJU'S Exam Prep

Updated on: September 25th, 2023

LIC AAO vs Bank PO which is Better for career prospects: The notification for LIC AAO 2021 Prelims exam is tentatively scheduled for the month of June 2021 whereas the Mains exam will be held in the month of July 2021. This has been much appreciated as a lot of Banking & Insurance aspirants were eagerly waiting for this. The huge number of applications for this exam is due to a very popular name which is LIC. Today we are discussing a detailed comparison on LIC AAO Vs Bank PO from salary, working hours, and growth perspective.

Established in 1956, besides insurance, LIC has now started attracting bank job aspirants too, given the parallels that run along with the exam pattern of the two examinations. So keep on reading this article to check LIC AAO vs Bank PO which is better? Which post requires maximum effort and gives maximum benefits.

There is no denying to the fact that aspirants are more attracted to the Banking sector and why not, it offers an attractive salary, timely promotion, and increment. Apart from the salary, an employee is liable to get other allowances. Every year lakhs of aspirants from banking insurance and other fields apply for Bank PO jobs.

Banks promote savings and lending among people whereas LIC promotes Insurance, which provides social security to people during and after their lifetime.

For recruitment to the post of AAO, LIC conducts an examination that is not aligned with the procedures followed by the IBPS. Nevertheless, there are many similarities in the exam pattern of both examinations. Hence, for a Bank aspirant, this is just a cherry on the cake and they must make the best use of the opportunity.

LIC AAO vs Bank PO Comparison

As LIC AAO job is related to the insurance sector and we are sharing a comparison of this with the bank PO profile. No doubt there is a difference in the working duties of both. Let us know about their work profile and duties they have as a professional.

Now let’s look at the details of these two exams:


A LIC AAO job involves administrative work, which includes:

  • Formulating new schemes
  • Inspecting policies
  • Managing and filing claims
  • Client interactions
  • Coordinating with other departments, provide assistance
  • Perform any work specified by the department head or administrative officer.

In addition to administrative work, PO also does the following:

  • Provide services to customers
  • Enhance the business of the bank
  • Handle cash activities at the bank
  • Clearance of Payments
  • Manage the accounts of the customers
  • Official communication

LIC AAO Vs Bank PO Working Hours and Work Pressure

  • AAO is more about managing administrative work
  • No customer dealing does not make it a stress-free job. A govt organization is always loaded with the paper works in hand.
  • In LIC there are only 5 working days in a week.
  • Bank PO in addition to the administrative work also deals with customers.
  • Apart from customer dealing it may include several other works like file work, fieldwork, cash handling, etc.
  • In Banks, 2nd & 4th Saturdays are considered as bank holidays.

LIC AAO Vs Bank PO Salary

  • Basic Pay of LIC AAO: The basic pay of a LIC AAO is Rs. 32795/- per month in the scale of Rs. 32795- 1610(14) –55335– 1745(4) –62315 and other admissible allowances as per rules.

  • The gross salary of a LIC AAO will be around Rs. 58000/- to Rs. 60000/- per month.

  • The revised basic IBPS PO salary structure thus becomes – 23700 – (980 x 7) – 30560 – (1145 x 2) – 32850 – (1310 x 7) – 42020.
  • Here, Rs. 23, 700 is the revised basic pay of Bank PO as applicable on 1st January 2016. Thus, a new entrant in a Bank as a PO is liable to get Rs. 23,700 as basic pay. While Rs. 980 is the annual increment that an IBPS PO will get and that will be applicable for a period of 7 years.

LIC AAO Vs Bank PO Other Allowances


The benefits that LIC AAO provides are Defined Contributory Pension, Special Allowance for passing Actuarial Examination, Gratuity, LTC, Cash Medical Benefit, Group Mediclaim, Group Personal Accident Insurance, Group Insurance, Vehicle Loan (2-wheeler/4-wheeler) as per rules.

you may get transferred every 3 or 5 years.

LIC has most of its branches in the cities.

There are other allowances and variables included in the IBPS PO Salary such as,

  • Leased Accommodation Reimbursement
  • Traveling Allowance
  • Newspaper Reimbursement
  • Medical Aid: The amount is ₹ 8000/- p.a.
  • Benefits under New Pension Scheme.

You may get a transfer after 3 years.

Banks are also located in rural areas.

Note: In banks & LIC, the transfers are done on the basis of seniority-level. Although, the women employees are given some relaxation.

Check here:

LIC AAO Vs Bank PO Future Growth


In LIC it takes at least 8 years to become eligible for the same

  • AAO
  • AO
  • ADM
  • DM
  • ZM

A banker is eligible for a promotion after 3-4 years

The hierarchy of a Bank PO in terms of his/her promotion goes in this order;

  • POAssistant Branch Manager
  • Branch Manager
  • AGM
  • GM
  • and further in scale II, III, IV cadre.

Note: Unlike the banks, the promotion policy of LIC is not that proactive.

Certainly, both the sectors have their own advantages & cons. Now the aspirants need to decide individually which sector seems to give a hike to their career path. 

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