In a significant ruling, the Madras High Court has upheld the State Bank of India’s (SBI) decision to cancel a job offer to a candidate due to a poor CIBIL score, highlighting the growing importance of financial discipline in professional appointments—even after selection.
SBI Withdraws Appointment Due to CIBIL Irregularities
The case revolves around P. Karthikeyan, who had applied for the Circle Based Officer (CBO) post at SBI. He successfully cleared the written examination and was even issued an appointment letter on March 12, 2021. However, on April 9, 2021, SBI revoked his appointment after reviewing his CIBIL report, which revealed “serious lapses in financial discipline.”
Candidate Challenges SBI in Court
Following the cancellation, Karthikeyan filed a writ petition in the Madras High Court, arguing that at the time of the job advertisement, he had no outstanding loans and had cleared all dues. Furthermore, neither CIBIL nor any other credit agency had classified him as a defaulter. He contended that SBI’s decision was unjust and lacked basis.
SBI Defends Its Stance
SBI defended its move by citing the clear eligibility guidelines stated in the job advertisement. The bank maintained that any applicant with a history of loan default, missed credit card payments, or negative credit reports from CIBIL or other agencies was ineligible for the position. The bank emphasized that candidates were made fully aware of these conditions beforehand.
Madras High Court’s Verdict
Justice N. Mala of the Madras High Court sided with SBI, observing that repayment of loans alone is not enough—a candidate’s entire repayment history must be spotless. The court stated that any negative credit report disqualifies a candidate, especially when such conditions were clearly specified in the job advertisement.
The judge added that once an applicant accepts the terms mentioned in the job notice, they cannot challenge those terms later. The ruling reinforces the importance of financial integrity not only during recruitment but also throughout one’s career.
Key Takeaway: Keep Your CIBIL Score Clean
This landmark judgment underlines how a CIBIL score is no longer relevant only for loans—it can directly impact job opportunities, including in government and banking sectors. Professionals and job seekers are advised to monitor and maintain a healthy credit history, as it could become a deciding factor in their career prospects.