Getting through the exam and interview for a bank or government job used to be the toughest part. But now, there’s something else that can stand in your way—your CIBIL score.
That’s right. If your credit history is poor, even after clearing all selection rounds, your job could still slip through your fingers. That’s exactly what happened in a recent case involving SBI, and now the Madras High Court has upheld the bank’s decision.
What’s New: CIBIL Score Can Disqualify You from SBI Job
In a recent ruling dated 2 June 2025, the Madras High Court supported SBI’s policy of rejecting job candidates with poor credit history. The case involved a young man who had cleared all rounds for the Circle Based Officer (CBO) post at SBI—but still lost the job offer because of multiple loan defaults in his credit report.
What Was the Case?
The candidate was a former Deputy Manager at ICICI Bank and later worked with HDFC Bank. He had taken multiple personal loans and credit cards to support his younger brother’s business. While things were fine at first, the business eventually suffered due to an accident. Loan repayments got delayed, and eventually, several EMIs went unpaid.
He later applied for a Circle Based Officer position at SBI and successfully cleared:
- The written exam
- The interview
- Medical fitness
- And even received the appointment letter
But before his joining, SBI reviewed his CIBIL score and found:
- Multiple loan defaults
- EMI delays
- A case filed by ICICI Bank
- Losses incurred by HDFC Bank on his credit card
- Over 50 loan inquiries in a short period
SBI’s Stand: Financial Discipline Is Non-Negotiable
SBI denied him the job based on Clause 1(E) of its eligibility rules. The bank stated:
“Candidates with poor credit history or ongoing recovery issues are not suitable for employment. A bank officer must demonstrate strong financial responsibility, as they deal with public money every day.”
What Did the Candidate Argue?
He filed a writ petition in the Madras High Court, claiming:
- The loan defaults happened due to unfortunate personal circumstances, not bad intent.
- SBI’s communication allowed for rectification of financial issues before joining.
- He had the right to clear dues or settle disputes before being permanently disqualified.
What Did the High Court Say?
The High Court sided with SBI. The verdict, issued on June 2, 2025, clearly stated:
“Bank employees are custodians of public funds. If a candidate’s own financial record shows negligence or default, assigning them financial responsibility is risky.”
The court rejected the petition and upheld SBI’s decision to withdraw the appointment offer.
Breakdown: What the CIBIL Report Showed
| Detail | Status |
|---|---|
| Personal loans taken | Yes (2017–2020) |
| EMI payment delays | Repeated |
| Loans written off | Some |
| ICICI Bank legal case | Active |
| HDFC credit card loss | ₹40,000 |
| Credit inquiries in 2 years | Over 50 |
What This Means for You
If you’re preparing for SBI or any bank/government job:
- Just passing the exam and interview is not enough
- Your credit score (CIBIL) matters now
- Even past defaults—even if settled—can be a red flag
- Banks expect you to have personal financial discipline
Common Mistakes to Avoid
- Ignoring old loan defaults before applying
- Thinking credit history won’t be checked for jobs
- Not verifying your CIBIL report before job interviews
- Assuming small defaults won’t matter
FAQs
Q: Can a low CIBIL score affect a government job?
Yes. Especially in banks or finance-related roles, a bad score can disqualify you.
Q: Is CIBIL report checked during recruitment?
Yes, particularly by banks like SBI, as part of their background check.
Q: What is considered a “bad” CIBIL score for jobs?
There’s no fixed number, but loan defaults, written-off loans, and legal recovery are serious red flags.
Q: Can I fix my score before applying?
Yes. Repay dues, settle defaults, and wait a few months before applying again.