27 Oct 2017 21:18 IST

Summer internship stipends rise for B-schoolers

Institutes hope the trend continues during final placement season

Bolstered by a rise in the number of offers and average stipend for summer placements, B-schools are expecting a better show for their management graduates during final placements this season. In fact, one B-school even claimed a stipend offer of as much as ₹5 lakh (for two months) this season .

Summer placements provide internship opportunities to first-year management students.

According to industry experts, 20-30 per cent of the pre-placement offers (PPOs) bagged by students ahead of the final placements come as a result of their summer internship stints.

So, not only does a good show during the summer internship help establish ability, it also gives certain students the edge during final placements.

Quick wrap-up

B-schools have not only managed to get offers from across sectors, they have also wrapped up the internship process in record time.

Xavier School of Management (XLRI) completed the summer internship placement process for its 2017-19 batch, comprising 364 students, in just two days. Last year, the institute had taken three days.

Down south, IIM Kozhikode (IIMK) finished the summer placements in four days.

According to Uday Damodaran, Chairperson, Placements, XLRI, not only did the institute receive a wider range of offers from various sectors but also saw companies offering more roles this time.

“Usually, we get offers from general management, operations and marketing companies. This year, we received offers from across the board. In fact, we had to, regretfully, turn some companies away,” Damodaran told BusinessLine.

Offers

About 90 companies participated in the summer internship process at XLRI. The institute saw a 20 per cent rise in the median and average stipend this year, compared with the previous year. The highest stipend offered was ₹5 lakh for two months.

IIM-K received close to 359 offers from around 100 recruiters. The placement season not only saw an upward swing in the average monthly stipend but students were also offered niche roles.

“The average stipend has risen by 25 per cent from last year. We were able to wind up the process in record time and hope that we do well in the final placements as well,” Priya Nair Rajeev, Chairperson, Placements, at IIM Kozhikode, said.

IIM Lucknow did not have data about the stipend offered to students. But it said it saw a 50 per cent increase in the finance profiles offered on campus this year.

Top recruiters

Interestingly, pharmaceuticals/healthcare companies, such as Allergan and Sanofi, recruited from the campus for the first time. Accenture Strategy, Aditya Birla Group, Amazon, AT Kearney, Cipla, Deutsche Bank, EY and Hindustan Unilever Ltd were some of the other major recruiters for internships.

Faculty of Management Studies, New Delhi, saw 100 per cent placement this season, with the highest stipend going up to ₹1.50 lakh a month.

IIM Calcutta is yet to commence the summer placement process for its general management programme.

However, students of PGDBA (Post-Graduate Diploma in Business Analytics) programme saw a significant increase in the internship stipends offered. The average monthly stipend increased to ₹97,804 this year, over ₹77,300 last year, Sumit Kalaskar, PGDBA Placement Representative said.

The PGDBA programme is jointly designed by IIM Calcutta, IIT Kharagpur and Indian Statistical Institute.

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