The State Bank of India (SBI) recently revoked the appointment of a candidate selected for the Circle Based Officer (CBO) post after an adverse CIBIL report revealed a history of loan and credit card defaults. The Madras High Court has now upheld that decision, reinforcing the importance of financial integrity in banking jobs.
Court’s Reasoning
Justice N. Mala dismissed the petition filed by the candidate (name changed), noting that individuals who deal with public money must demonstrate strong financial discipline. The court agreed with SBI’s argument that a person with a history of default cannot be entrusted with responsibilities involving public funds.
Recruitment Rules Were Clear
Clause 1(E) of SBI’s recruitment notification clearly stated that candidates with a default history in repaying loans or with negative reports from CIBIL or other agencies would not be eligible. Despite this, the candidate applied, took the test, and was selected — only for the CIBIL report to reveal the defaults later.
Details of the Candidate’s Financial History
The CIBIL report showed that while serving as Deputy Manager at ICICI Bank in 2018, the applicant had taken personal loans ranging from ₹90,000 to ₹1.5 lakh and failed to repay them on time. He also defaulted on credit card dues, leading to a ₹40,000 loss to HDFC Bank in 2019.
Arguments from Both Sides
SBI’s legal team accused the petitioner of hiding his past defaults during the recruitment process. Meanwhile, the candidate’s lawyer argued that all dues had been cleared before applying. However, the court clarified that the eligibility was based on a clean credit record — not merely repayment before applying.
Final Verdict Upholds Merit and Transparency
Justice Mala emphasized that recruitment to public service must strictly follow the stated rules. She cited a 2003 Supreme Court verdict to reinforce this view. The ruling sends a strong message about the importance of transparency and financial responsibility, especially in public sector roles involving money management.
Conclusion
The case sets a clear precedent: public financial institutions like SBI are justified in denying appointments to candidates with a questionable financial track record. It also underlines the value of personal accountability in careers that demand trust, integrity, and responsible handling of public resources.
