SBI Rejected Candidate for CBO Post due to low CIBIL, Court gives Order
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Now, Banks are rejecting candidates for jobs on basis of poor CIBIL score. Recently, SBI rejected a candidate for post of CBO on basis of poor CIBIL score. The matter reached Madras High Court and now, the court has taken decision against the candidate.
The Madras High Court has supported the decision made by the State Bank of India (SBI) to cancel the appointment of a candidate who was selected for the post of Circle Based Officer (CBO). The CIBIL report showed that the person had a long history of not repaying bank loans on time.
The candidate had filed the case in court and Justice N. Mala dismissed the legal complaint (writ petition). The judge agreed with the SBI’s decision, saying that employees working in banks handle public money, so it is very important that they themselves show financial discipline.
The judge clearly stated:
“Someone who does not manage their own money properly cannot be trusted with handling public funds.”
The judge also agreed with the bank’s lawyers, who said that the candidate did not object to the eligibility rule mentioned in the job notification, which said that people with bad credit history are not eligible for the post.
The recruitment notice clearly mentioned that Candidates who had defaulted (not repaid loans or credit card dues) Or those with negative reports from CIBIL or other agencies would not be eligible for the job.
Still, the petitioner applied for the post, took the exam, and even appeared for the interview. Only after he was selected did SBI find out about his poor CIBIL report.
What SBI Found in the CIBIL Report:
- While working as Deputy Manager at ICICI Bank in 2018, Parthiban had taken three personal loans (₹90,000 to ₹1.5 lakh each), but he did not repay them properly.
- In 2019, he also defaulted on credit card payments, which caused a ₹40,000 loss to HDFC Bank.
SBI’s lawyer said that the candidate hid these facts during the application process. On the other hand, candidate’s lawyer argued that he had cleared all dues before applying, so his past defaults should not be held against him.
What the Judge Said:
The judge replied that the rule was not just about clearing dues, but about having a clean and timely repayment history. SBI, being a responsible public bank, was right in not appointing someone with a bad financial track record. She also referred to a Supreme Court judgment from 2003, which said that:
- Public jobs must follow the recruitment rules strictly, and
- Allowing rule-breakers would be unfair to others who follow the rules.
The court agreed with SBI’s decision to cancel the job offer. It said that people who don’t manage their own finances well should not be given jobs where they handle public money, and rules mentioned in job notifications must be respected and followed strictly.
Because it is already mentioned in recruitment notification that low CIBIL or negative history of repayment loans of the candidate, will not be eligible. Hence, here the decision of SBI and Hon’ble Court are right.