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IIM-C student gets record Rs 12.5 lakh for 2 month internship

A student from the IIM-C earns highest stipend paid to an IIM student ever.

, ET Bureau|
Jul 02, 2009, 01.36 AM IST
NEW DELHI: The world is turning the downturn back, investment bankers are in the dock, and management mantras are being taken with a pinch of salt. Yet, a student from the Indian Institute of Management (Calcutta) earns the highest summer internship stipend paid to an IIM student ever, exceeding the highest paid stipend to an IIM student last year for a summer internship by over 50%.

He had interned with an investment bank in Hong Kong and was paid a stipend of Rs 12.5 lakh. ���I got a stipend of Rs 12.5 lakh for a two-month internship,��� the student told ET on condition of anonymity. The student is an engineer from IIT Delhi and has worked in the finance domain with companies in Delhi for over two years.

When asked as to what he plans to do with the money, he said he may invest some money in the market, after paying for his MBA fees. If this stipend gets converted into a pre-placement offer, the student could fetch about Rs 75 lakh as basic salary alone, excluding perks, variable pay and bonus.

He also added that the part-payment was made to him in dollars and the rest in rupees, but even after factoring out the exchange rate quotient, the stipend is significantly higher than last year.

The highest stipend paid last year was also by another I-bank in London. Ironically, at a time when IIMs saw a dip of 15-30% in the average salary packages being offered this year, the internship stipends are increasing against a trend that saw global investment banks and other companies reducing the number of jobs offered to IIM students significantly.

Instead, many students had to take up job in start-ups and smaller companies. Students at IIM-A have also indicated that summer stipends have gone up, but not necessarily at the same rate. However, the institute did not provide any official figures or data related to this year���s or last year���s stipends.

A student from IIM-A, who did not wish to be identified, told ET: ���Last year, Barclays Hong Kong had given the highest summer internship stipend of around Rs 8 lakh to one of the students at IIM-A. This year, the stipends have gone up to around Rs 10 lakh.��� IIM Bangalore, too, declined to give out any details on summer internship stipends as an institute policy. In fact, most of the IIMs said that they do not compile data related to stipends as such.

Those familiar with the IIMs say that the remuneration paid across IIM A, B & C are in the same bracket, with a 10-20% difference in upper and higher limits. Summer internship stipends can start from anywhere between Rs 20,000-30,000 for a two-month period.

In case, students are interning with start-ups or NGOs, stipends can even be lower than this. Interestingly, despite the global economic slowdown and collapse of a few international banks, the best offers and remunerations are still coming from the I-banks and international consulting firms.

These firms include names, such as Morgan Stanley, Macquarie, Goldman Sachs, McKinsey, AT Kearney, BCG, Bain & Co, Arthur D Little, HSBC Global, JP Morgan Chase, Barclays Capital, Deutsche Bank and French I-bank Calyon, among others. Besides these, Morgan Stanley London and Swiss banks UBS and Credit Suisse recruited exclusively from IIM Calcutta this year.

���Remuneration is a factor of a company policy than the economic environment. While there could be more number of students getting Rs 7-8 lakh stipend last year, this year, a few students got the higher compensation,��� said IIMC external relations secretary Paul Savio.

���But this remuneration is so far the highest to be offered,��� he added. He also said that companies across sectors have given better stipends this year, as compared to last year, not taking start-ups and NGOs into consideration. IIM Kozhikode director Debashis Chatterjee agrees, ���Marketing companies have shown a slight increase in stipends this year, to commensurate with better roles they offered.���

Meanwhile, the placement in-charge at IIMC, Prof Prafulla Agnihotri hopes that these stipends may lead to better salary offers in the next placement season. ���We are happy that our students are getting good projects and are being paid well, but our aim is to create a career for them and not only a job.���

Students, who intern overseas with I-banks and consulting firms, are usually paid in the range of Rs 5-8 lakh. For internship with marketing firms overseas, it could start with Rs 1 lakh. Apart from India, students go for their internships in the US, Europe, Australia, Hong Kong, Singapore, the Middle East. For instance, from IIMB, 85 students interned abroad this year.

IIMs also got offers from other domains, such as retail, general management, marketing and commercial banking. Some of the marketing names include P&G, Unilever, Diageo, Pepsi, Nestle and ITC. New firms on IIM campuses this year were Yahoo, Amazon, Provogue, DHL Logistics, Reebok, Century Ply and the Mahindra Group.
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