If you are preparing for a bank or government job, just clearing the exam and interview is no longer enough.
Now, your CIBIL score has also become very important. Recently, a case came to light where a candidate lost a job opportunity at SBI due to a poor credit history.
What happened?
A young man who had worked as a deputy manager at ICICI Bank and later at HDFC Bank had taken several personal loans to support his younger brother’s business.
At first, the business was doing well, but after an accident, it started facing losses.
This made it difficult for him to repay the loans, leading to delays in repaying both loans and credit card bills.
Later, he applied for the position of Circle Based Officer (CBO) at SBI. He passed the exam, cleared the interview and medical test,
and even received the appointment letter. However, before he could join, SBI reviewed his CIBIL report and found many issues related to loan defaults and recovery.
What did SBI say?
SBI, referring to Clause 1(E) of its rules, said that candidates with poor loan repayment records or low CIBIL scores are not eligible for jobs at the bank.
SBI explained that since bank employees manage public money, they must also maintain strong financial discipline.
What did the candidate do?
The candidate filed a writ petition in the Madras High Court. He argued that due to unexpected circumstances, it became hard for him to repay the loans, but his intentions were never wrong.
He also pointed out that SBI had mentioned in a letter that loan defaults could be corrected before joining, so he should be given that chance.
What did the High Court say?
On 2 June 2025, the Madras High Court ruled in favor of SBI. The court stated that bank employees handle public money,
and if a person’s financial record is not good, assigning such responsibility to them is risky. The court rejected the petition and upheld SBI’s decision.
What did the CIBIL report show?
Multiple personal loans and credit cards were taken between 2017 and 2020.
EMI payments were often delayed, and some loans were written off.
ICICI Bank had filed a case regarding one of the loans.
HDFC Bank suffered a ₹40,000 loss due to a credit card default.
The report also showed over 50 credit inquiries, indicating frequent loan applications.
