Getting a job at a major bank like SBI is a big achievement. But what happens if your offer is cancelled even after you clear the exam, interview, and medical tests?
That’s exactly what happened in a recent case where the Madras High Court upheld SBI’s decision to cancel a candidate’s appointment due to his poor credit history.
Financial Discipline Is a Must in Banking: Court
The court refused to interfere with SBI’s decision, stating that financial discipline is crucial in the banking sector.
Since bank employees deal with public funds, a person with a poor credit record cannot be trusted with such responsibility.
Justice N Mala noted, “In banking business, employees handle public money, so financial discipline must be strictly followed.
Efficiency in dealing with money is essential, and someone with poor financial discipline cannot be trusted with it.”
SBI’s Policy on Creditworthiness
The court agreed that SBI was right to have a policy that bars candidates with a bad CIBIL score or history of loan defaults from getting a job. According to SBI, this rule is clearly mentioned in its eligibility criteria.
Candidate Cleared All Stages, But Was Rejected
The case involved a man who applied for the post of Circle Based Officer (CBO) at SBI. He cleared the written test, interview, and medical check. He even received an appointment letter on March 16, 2021.
However, SBI pulled his CIBIL report on March 12, and based on that report, the bank asked him for an explanation.
Despite submitting a response, his appointment was cancelled under Clause 1(E), which checks a candidate’s credit record.
Petitioner Claims: No Dues, No Defaults
The candidate argued that at the time of application, he had no outstanding dues and had cleared all his loans. He said he had never been listed as a defaulter. He also alleged discrimination, claiming that others with similar issues were still appointed.
SBI Responds: Candidate Had Multiple Loan Defaults
In reply, SBI said its rules clearly disqualify candidates with poor CIBIL scores. It accused the petitioner of hiding details about his loan defaults, and said he had defaulted on more than one loan, making his case different from others.
Court Findings: Adverse Credit History Confirmed
After reviewing the CIBIL report, the court found that the candidate had nine irregular credit accounts and over 10 credit enquiries. The court also pointed out that he himself admitted to some loan defaults.
The bench stated, “The bank rightly decided that candidates with default history and negative CIBIL reports were not eligible.”
No Discrimination, Rules Were Clear
The High Court rejected the claim of discrimination, stating that only those who met all eligibility conditions were given appointments.
Since the candidate defaulted on loans and admitted it, the court ruled that SBI acted according to policy.
In conclusion, the Madras High Court dismissed the plea, supporting SBI’s decision to cancel the appointment over creditworthiness issues.
