The Madras High Court has recently upheld the State Bank (SBI) verdict to cancel the appointment of a candidate for a circle -based officer (CBO) post due to its poor credit history. Although the candidate had approved both the written examination and interview, SBI was withdrawn after receiving his Credit Information Bureau (India) Limited (CIBIL) report, which highlighted the previous loan lapse.
This incident has now become an important example for banking aspirants, underlining that financial behavior, especially the credit history of a candidate, being considered as a major eligibility factor in recruitment for posts that include public money handling.
Why did SBI reject the candidate?
After the final selection, SBI examined a background and received a CIBIL report, which revealed the poor credit history of the candidate. The following revealed in the report:
- He had taken several personal loans from ₹ 90,000 to ₹ 1.5 lakh while serving in another bank, but failed to repay on time.
- He also missed out a credit card payment of around ₹ 40,000.
SBI canceled its appointment according to section 1 (E) of the official recruitment notification, which was clearly stated that:
“Candidates with a record of default in repayment of loan/credit card and/or will not be eligible for adverse report appointment from CIBIL or other external agencies.”
Despite cleaning all the outstanding amount before applying, the candidate’s previous omission affected his eligibility. The Madras High Court ruled in favor of SBI, stating that the candidates should not only have a clear outstanding, but a clean track record. The judge also mentioned that persons handling public funds should demonstrate financial discipline themselves.
What is a CIBIL report and why does it matter?
In recent years, especially in banking and finance sector recruitment, the credit history of a candidate has played a more important role in final appointments. A CIBIL report shows how a person in the past has managed loans, EMI and credit card payment. For posts that handle public funds such as SBI CBO or PO, it becomes a direct solution of the candidate’s credibility and financial discipline.
| Duration | Meaning |
| Thief | Credit Information Bureau (India) Limited – Maintains credit records of individuals and generates credit reports. |
| Cibil score | A 3-a digit number (300-900) is showing your credibility. A high score reflects better credit history. |
| credit history | Last record of repayment of loan, EMI, and credit card arrears. |
| debt default | Timely loan or credit card failed to repay the arrears. Many defaults reduce your CIBIL score. |
What candidates should learn from this incident?
With the decision of this court, it becomes clear that cleaning only written tests and interviews is not enough for final selection in banking jobs. Credit history, which was earlier ignored by several candidates, now holds real weight in final appointments. What candidates need to be ensured here:
- Read the recruitment notification carefully, especially eligibility segment.
- Check your Cibil score regularly from official sources.
- Avoid any loan or credit card default, and try to repay all the arrears on time.
- If you have approved the previous arrears, keep NOCS or Settlement proof ready.
- Do not ignore your financial profile; Maintain financial discipline when ready for the exam.
