B-School Students Write off Govt Firms In Good Times
PSUs say with the economy back on track, the students are preferring private sector companies due to fatter pay packets. PSUs and nationalised banks, with their conservative salary structures, are losing out.
"The private sector increasingly made its presence felt this year, unlike the previous t
wo years, when it was playing safe. PSUs and nationalised banks have been unable to compete on compensation," said Prakash Pathak, chairperson, placements, Institute of Management Technology (IMT), Ghaziabad.
In 2010, around 20 public sector companies visited IMT. This year, the number is seven. While PSU banks such as Central Bank of India and Oriental Bank of Commerce are offering students Rs 5-6 lakh per annum, private banks like Citibank, Axis, ICICI and HDFC are paying over Rs 10 lakh per annum.
The numbers are starker for Indian Institute of Management, Bangalore (IIM-B). In 2008-09, seven PSUs made 24 offers. This year, two PSUs have made two offers. Five PSUs offered 16 jobs last year. "Not only are PSUs and nationalised banks reducing recruitment, the students' preferences are also shifting towards the private sector," said Sapna Agrawal, head, career development, IIM-B.
PSUs such as Bharat Petroleum Corporation, Hindustan Petroleum Corporation, GAIL, IOCL, NTPC, SBI Cap, Sidbi, Sebi, United Bank of India and Union Bank of India, which picked up the highest number of
students from IIM-Ahmedabad in 2009, have recruited from other
B-schools in good numbers this year.
M V Nair, chairman and managing director, Union Bank of India, said, "Now that the economy is picking up, we have not been able to pick up as many students from IIMs. They are preferring private sector companies."
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