Why Banks Are Hiring LBO and CBOs in 2025?

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Why Banks Are Hiring LBO and CBOs in 2025? In 2025, Public Sector Banks like Bank of Baroda, Indian Overseas Bank, Punjab and Sind Bank, and Union Bank of India have been conducting large-scale recruitment drives for Local Bank Officers (LBOs) and Circle Based Officers (CBOs). These roles have gained attention among banking aspirants due to their stable postings, regional responsibilities, and good career prospects. With Bank of Baroda Recruiting 2500 LBOs this year, it’s important to understand how these positions differ from the popular Probationary Officer (PO) role. This article explains the responsibilities, eligibility, selection process, and growth prospects of LBOs, CBOs, and POs.

What is a Circle Based Officer (CBO)?

Circle Based Officers are mid-level officers recruited by banks, especially the State Bank of India, to manage operations within a specific geographic circle or state. Unlike POs, CBOs are hired through lateral recruitment and must already have banking experience. Their responsibilities include managing branch performance, ensuring credit flow, conducting audits, and leading business development in their assigned area. CBOs are typically not transferred outside their home circle, allowing them to build long-term local relationships.

Why Banks Are Hiring Local Bank Officers in 2025?

Banks are focusing on hiring LBOs to strengthen local presence and improve rural outreach. These officers are well-versed in the local language, culture, and economic conditions, which helps them better understand customer needs and offer personalized banking services. LBOs also help in:

Faster implementation of schemes like PMJDY, KCC, and Mudra Loans
Better credit monitoring and NPA control
Coordination with local governance and financial literacy initiatives
Reducing transfer-related disruptions in HR and operations

Why Banks Are Hiring Circle Based Officers in 2025?

CBOs play a strategic role in improving bank performance at the regional level. They are posted within their home state or circle and are expected to lead branch-level execution with minimal transfers. Key reasons behind this hiring trend include:

Strengthening branch operations with experienced officers
Reducing dependence on probationary staff for branch management
Improving customer service and retention in specific circles
Enhancing decision-making and credit planning at the regional level

Difference Between LBO, CBO, and PO Posts

LBOs, CBOs, and POs have different purposes, recruitment methods, and work scopes. Here is a quick overview to help you understand how these roles compare:

Purpose of the Role

LBOs focus on local development and coordination with district-level authorities. CBOs are recruited to manage and improve banking operations within a specific circle. POs are trained to take on various managerial roles in the future and are posted anywhere across India.

Eligibility Criteria

LBO recruitment often targets local candidates or existing staff with relevant knowledge. CBOs must have at least 2 years of prior experience in a Scheduled Commercial Bank or RRB. POs can apply after graduation and do not require prior experience.

Posting and Transfers

LBOs and CBOs enjoy region-specific postings, leading to more stability. POs are subject to all-India transfers and are trained through rotational postings across departments and locations.

Selection Process

LBO recruitment may be state-specific or through internal promotion. CBOs are selected through a written test and interview based on experience. POs go through a competitive selection process including Prelims, Mains, and Interview.

Career Growth

All three posts offer long-term growth opportunities. LBOs may become regional officers, while CBOs can grow into senior roles like Branch Manager or AGM. POs have a structured promotion path leading to top management positions in the bank.

Tripti Mishra

Hi, I’m Tripti, a senior content writer at Oliveboard, where I manage blog content along with community engagement across platforms like Telegram and WhatsApp. With 3 years of experience in content and SEO optimization, I have led content for popular exams like SSC, Banking, Railways, and State Exams.