India's largest state-run bank has received 1.7 million applications for just 1,500 entry-level clerk jobs – and has promised to examine all of them, a report said.

State Bank of India chairman Pratip Chaudhuri attributed the huge interest to good marketing and attractive employment terms, with the number of applications underlining the appeal of "jobs for life" in the Indian public sector.

"This time, we had given the advertisement a good profile, highlighting the position of SBI and describing the compensation package in detail, which attracted a lot of attention," Chaudhuri told The Times of India.

For positions in Mumbai, the bank offered a starting package of 69,000 rupees ($US1,270) a month for the "probationary officers" including a housing allowance – an attractive perk in the expensive local real estate market.

Job opportunities in the Indian private sector have fallen in the last 18 months as economic growth has dropped to its lowest level in a decade due to declining business confidence and high interest rates.