Both the companies are among the biggest recruiters on campus in the financial domain and offer huge salaries and lucrative roles to students in analyst and associate positions. Not surprisingly, these elite institutions have been hard hit.
This year, Lehman Brothers and Merrill Lynch have both offered PPOs (pre-placement offers) to IIM students, including foreign postings, which will, in all probability, be withdrawn.
Though the institutes have received no official intimation as well, Lehman will naturally be a no-show during final placements, although there is a faint hope among students that Bank of America may come after the Merrill buyout.
IIM Calcutta placement co-ordinator Rahul Ajmani told ET, “Not only are both these companies names to reckon with globally, they also offer extremely lucrative roles. This year, Lehman has offered 4 PPOs in London and New York while Merrill has offered PPOs in Singapore, London and India.”
During the final placements last time, Lehman had made four offers and Merrill around 5-6. “We're hopeful that Bank of America might come for final placements after things are sorted out," said Ajmani.
IIM Bangalore placement chairman S Mukherji feels much the same way. “The two companies had already offered a total of 6-7 PPOs this year. During final placements earlier, they had recruited about 12-13 students between them, many of them on foreign desks, including London, New York, Tokyo and Hong Kong. We have not received any word from them yet and they are unlikely to intimate us so early. But this is bad news, indeed.”
IIT-Madras deputy registrartraining, placement and public relations office, Lt Col (retd) Jayakumar said, “Lehman Brothers has been recruiting for the past three years in the posts of associates and junior analysts. In their first year, they hired 16, in the second year 22 and 11 last year. The average salary offered is Rs 8.5 lakh per annum. The students placed haven't got back to us so far about the problem at Lehman. We are yet to see how the students react to recruitment from the investment banking space this year," he said.
IIM Ahmedabad PGP student placement committee co-ordinator Mihir Lal said, “We will be unable to give any figures as per our policy. Our official stand is that it is too early to tell right now what the fallout of all these developments will be.” IIM Lucknow placement chairperson S Kumar, however, preferred to down play things.
“Lehman Brothers made 3 offers last year. Yes, it's a loss since they are among the top names, but in terms of numbers, the impact will not be that great,” added Mr Kumar.
Prof Ganapathy, head-placement and external relations, Institute for Financial and Management Research, said: “Lehman is visiting our campus for the first time this month for recruitment. What happens at the global level might not be replicated in India.”
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