Private Sector’s Loss is Public Sector’s Gain, as PSUs Hire Big Time from IIM Lucknow

With the private sector companies being cautious this year and tip-toeing around placements at B-school campuses, as a result of ongoing global economic crisis, it’s the Indian PSUs and government banks that have come to the rescue and provided the much-needed momentum to final placements at all IIMs this year. With the campus placements recently concluded at IIM Lucknow, the PSU hiring spree has continued. Out of the total of 267 students that have graduated this year from IIM-L, PSUs have recruited 65 students.

As per a Business Standard Report, “While the economic meltdown kept some key recruiters away from campus, Indian public sector units (PSUs), including ‘Navratnas’ have recruited a total of 65 students of Indian Institute of Management-Lucknow (IIM-L) in the just concluded placement season 2009.”

“Coal India Ltd, Steel Authority of India Ltd, Bharat Heavy Electrical Ltd. and Oil & Natural Gas Corporation were among the 15 top PSUs, which went about head hunting at the IIM-L. CIL and SAIL recruited 12 students each.” Others included Bank of Baroda, Union Bank of India, SIDBI, NTPC, and GAIL.

The report further states, “The PSUs literally saved the day for IIM-L with the handsome recruitment figures compared to previous years placements. Last year, only two PSUs had visited the campus, but returned empty-handed due to lack of interest among students. This year, the economic condition is different and the students are giving priority to job security than fancy positions and pay packets.”

There is also very definite slump in placement figures. Though IIM Lucknow has maintained its policy of not revealing the salary figures, the data so far disclosed to media clearly indicates the fall in job-offers.

As reported by ExpressIndia.com, “There were 284 placement offers for the 267 graduating students this year at IIM Lucknow, indicating that only a few got multiple offers. Last year, there were 586 offers for 256 students. The number of foreign placements has also gone down. Compared to 32 offers last year, there were just 15 foreign offers this time. Moreover, seven students opted out of the placements this time to open up their own ventures.”

Despite the financial sector majors being the worst hit of the lot due to global recession, the government banks have found acceptance at all campuses and managed to lap up the best B-school talent this year, since they promise job-security.

As stated in an Economic Times News, “Lower salaries have also prompted public sector banks to visit management institutes this year. Union Bank of India, which is a new recruiter at IIMs, has made the highest number of offers to IIM-Ahmedabad students, while others such as Bank of Baroda and IDBI replaced top-notch investment banks that always grabbed the limelight at IIMs earlier.”

However, the good news is – considering the current global recession scenario, all IIMs, including IIM Lucknow, seem to have done fairly well, and managed to place their entire batches, albeit through extended placement seasons, which is indeed no mean feat to achieve in today’s times.

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