No Room for Bad Credit: Madras High Court Backs SBI’s Bold Move to Cancel Job Offer Over Poor Financial Discipline | Personal Finance News
New Delhi: The Madras High Court has agreed with the State Bank of India (SBI) after it cancelled a job offer to a candidate because of his poor credit history. The court said that good financial discipline is very important for people working in banks, as they handle public money.
A candidate had successfully passed all the stages for the post of Circle Based Officer (CBO) at SBI. He cleared the written exam, interview, and medical checks. However, before joining, the bank checked his CIBIL credit report and found that he had a poor credit history, including several loan and credit card payment issues, as well as more than ten credit enquiries. Because of this, SBI decided to cancel his appointment.
The candidate argued that he had no outstanding dues when the job notification was published. He felt the cancellation was unfair and claimed that other people with similar credit problems were allowed to join the bank. He also said that he was being discriminated against.
SBI explained that, according to its recruitment rules (specifically Clause 1(E)), candidates with poor credit history or defaults in loan or credit card payments are not eligible for the job. The bank pointed out that the candidate’s CIBIL report showed several financial irregularities and that he did not fully disclose his credit problems during the application process.
Justice N Mala, who heard the case, said the bank was right to be careful. She explained that bank employees must have good financial discipline because they are responsible for handling the public’s money. The judge stated, “A person with poor or no financial discipline cannot be trusted with public money.”
The court also rejected the candidate’s claim of discrimination, saying that only those who met all the eligibility criteria were given jobs.
The court found no reason to overturn SBI’s decision and dismissed the candidate’s petition. The ruling makes it clear that banks can set strict standards for financial discipline among their employees, and that candidates must meet all eligibility requirements—including having a good credit history—to be considered for such jobs.
