High CIBIL score after settlement, loan rejected

I have a score of 700+ on CIBIL (I had taken out a report on my own by paying online at CIBIL). My recent application for a Personal Loan at ICICI Bank was rejected. The reason given to me that there is a settlement in my account that happened some time back. because of this, my loan has been rejected.

Is this possible? Isnt credit score the only indicator banks look at for evaluating a profile? How can an old settlement case be reason for loan rejection when my score is so high