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    Nearly 100% Placements At New IIMs, But Average Salaries Much Lower Than The Older Ones

    By Nidhi Agarwal, Atul Ade
    12 Sep'22  3 min read
    Nearly 100% Placements At New IIMs, But Average Salaries Much Lower Than The Older Ones
    Synopsis

    In 2015-16 the Government of India established what we know as the “new” Indian Institute of Management (IIMs). These are nearly as successful at placing their MBAs as their established counterparts, IIM-A, IIM-B and IIM-C . However, the newer IIMs post median salaries haven’t been able to match that of older IIMs. 

    Nearly 100% Placements At New IIMs, But Average Salaries Much Lower Than The Older Ones
    Synopsis

    In 2015-16 the Government of India established what we know as the “new” Indian Institute of Management (IIMs). These are nearly as successful at placing their MBAs as their established counterparts, IIM-A, IIM-B and IIM-C . However, the newer IIMs post median salaries haven’t been able to match that of older IIMs. 

    Until 2015, there were only 13 Indian Institutes of Management (IIMs) across the country. But by 2016, India had 20 new IIMs. Seven new IIMs were established in Nagpur, Maharashtra; Amritsar, Punjab; Bodh Gaya, Bihar; Sirmaur, Himachal Pradesh; Jammu, Jammu and Kashmir; Visakhapatnam, Andhra Pradesh; and Sambalpur, Odisha.

    Over the last few years, the seven newest IIMs grew rapidly and nearly all started featuring in the Ministry of Education’s National Institutional Ranking Framework (NIRF) lists of management institutions. By 2017-18, nearly all were posting over 90 per cent placement and several, close to 100 per cent — a feat many B-schools take decades to achieve. While their placement figures were impressive, and comparable to those of the oldest IIMs , the median salaries at which graduating MBAs were recruited were far less impressive.

    This year all the IIMs, new and old, have finally made it into the NIRF ranking lists. IIM Visakhapatnam was the only one left but in 2022, it was ranked for the first time by the NIRF.

    Given below is an analysis, first of how these institutions fared on their own and later, how they fared in comparison to the established IIMs.

    Jobs Through Campus Placement: 2019-21

    For the newly-established IIMs, the placement records are remarkable. Most of their students opted for placements and just one student opted for further studies from the 2020-21 batch. That one student was from IIM Visakhapatnam. Though the number of graduates is increasing every year, their placement record has remained close to 100% in most cases. IIM Sambalpur which was the only one to post placements below 90 per cent in 2017-18 made great strides over the next two years to place its entire batch in 2019-20 and continued in 2020-21 as well.

    Chart headline | IIM Placement: Students Placed (In %)

    Name

    2018-19

    2019-20

    2020-21

    IIM Nagpur

    100

    100

    100

    IIM Amritsar

    100

    96.23

    100

    IIM Bodh Gaya

    100

    100

    100

    IIM Sirmaur

    97

    93.88

    100

    IIM Jammu

    100

    100

    100

    IIM Sambalpur

    93

    100

    100

    IIM Shillong

    100

    100

    100

    IIM Rohtak

    93.6

    96.55

    100

    IIM Ranchi

    100

    100

    100

    IIM Raipur

    100

    100

    100

    IIM Trichy

    98.27

    94.54

    95.20

    IIM Kashipur

    100

    98.79

    99.62

    IIM Udaipur

    92.76

    94.92

    97.86

    IIM Visakhapatnam

    94.92

    100

    99.18

    Also Read | IIM Bangalore Placement 2020-21 Report: Salary, Recruiters

    IIM Placements: Old And New

    The six established IIMs, including the top three management institutions in the country as ranked by the NIRF, together averaged a placement percentage of 99.54 per cent in 2020-21. For the same batch, the new ones placed 99.4 per cent. Just 13 students were not placed out of the 3,733 who graduated from the top six IIMs in 2020-21; as they went for higher studies.

    As for the new IIMs, a total of 19 students from the graduating batch of 2,559 were not placed but, as their NIRF data shows, only one student went for higher studies either.

    Old & New IIMs: Placement PerformanceOld & New IIMs: Placement Performance

    IIM Job Drive: Median Salaries

    Over the last three years, IIM Shillong had the best median salary. For the rest, it is improving each year with IIM Bodh Gaya, Sirmaur, Jammu and Sambalpur showing a dip in the last one.

    Chart Title | Median Salary Per Annum (In Rs. Lakh)

    Name

    2018-19

    2019-20

    2020-21

    IIM Nagpur

    12

    12.8

    13

    IIM Amritsar

    12

    11.5

    12

    IIM Bodh Gaya

    10.6

    11

    10

    IIM Sirmaur

    9

    10.5

    10

    IIM Jammu

    9.4

    10.64

    10

    IIM Sambalpur

    9.23

    10.5

    10.35

    IIM Shillong

    16.5

    17

    17.5

    IIM Rohtak

    11.85

    13

    13.74

    IIM Ranchi

    14.5

    14.55

    14.65

    IIM Raipur

    14.12

    14.78

    14.8

    IIM Trichy

    13

    14.5

    14.6

    IIM Kashipur

    11.8

    12.54

    12.72

    IIM Udaipur

    12

    12

    13

    IIM Visakhapatnam

    12

    12

    12

    Also Read | How 3 Professionals Are Repaying Their Education Loans

    Median Salary: IIMs Compared

    While both old and new IIMs had similar placement records in terms of percentages placed, there is a huge gap in the median salary between the two sets. The median salary earned by MBA graduates from the new IIMs is practically half that of the median salary that graduates from the older IIMs get. In 2020-21, the median salary for the top six IIMs hovered around Rs 25 lakh per year. While the median salary among the newer IIMs was around Rs 12-13 lakh per annum.

    IIMs: Comparison Of Median SalaryIIMs: Comparison Of Median Salary

    Median salary in simple terms means that half the candidates earn below this level and the other half receive above.

    The average median salary is around Rs 12.74 lakh for the 14 new IIMs while the old ones have an average of 24.4 lakhs.

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