Want to join a bank? First clean up your credit history

Source:fc: Ritwik Mukherjee Apr 01 2010 , Kolkata

You have to be a good borrower before you become a good banker. That
seems to be the current line of thinking at a number of private banks operating in India.

Increasing number of private banks, including some foreign banks, are making Cibil (Credit Information Bureau of India) check of a candidate mandatory before final hiring. There are also instances of candidates being asked to quit even after getting his appointment letter on ground of a negative Cibil report, officials in several banks confirmed.

This is because “financial probity” is of highest importance, banks feel. The recent move coincided with the fact that the banks have come back on a hiring mode after a temporary lull and more so with the economy being on a recovery path. And this move is not without a rationale.

“There are many ethical issues in the banking profession. Self discipline and particularly fiscal discipline is the other thing, which is of utmost importance for being a good banker,” a senior official working with a leading private bank, (one of the banks to have introduced this system) told FC.

This being a purely internal HR procedure, no bank was forthcoming in confirming the development. However, the banks that FC learnt to have introduced this system include Kotak Mahindra Bank and HSBC. And many more are likely to follow suit soon, according to banking industry officials.

Responding to a questionnaire from FC, the official media handling agency of Kotak Mahindra Bank only said the person concerned was travelling and could not comment. An official spokesperson of Barclays Bank India also refused to comment.

While clarifying that their pre-employment scre­ening process currently did not cover Cilbil check, Madhavi Lall, regional head of HR, South Asia, Standard Chartered Bank, told FC, “All employees who join the bank are subject to a pre-employment screening pro­cess to minimise the risk of hiring inappropriate or untrustworthy individuals. We undertake identification and capability checks.”

Talking about the bank’s hiring plans, Lall said, “We continue to look out for external talent to fuel the bank’s growth agenda in the coming years and will be looking at a gross hiring of nearly 2,500 during the next 12 months.”