SPJIMR, IIM-L, XLRI lead fastest payback period amongst top B-schools

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MBAUniverse.com News Desk |
September 17, 2013
To help CAT 2013 aspirants in deciding which Top B schools to choose and apply, we bring here a comparison of Top 10 B schools in India on the basis of their payback period
While central university MBA departments like FMS Delhi and JBIMS are exceptionally ahead as compared to other B-schools owing to their low fee structure, IIM-L is the only IIM in the list of top 5 B-schools with fastest payback period

As you appear for different MBA exams like CAT, XAT, NMAT and apply to top B-schools depending on the value of their MBA programmes on different parameters, your evaluation for B-schools on their payback period can bring you yet another new perspective.

While established IIMs like IIM-A, IIM-B, IIM-C grab top positions on most of the parameters, the list of B-schools bringing you fastest ROI suggests otherwise. Before you enter into an ‘IIM Vs Non-IIM conflict’ for applying to your desired MBA programmes, we bring here the list of top B-schools on their fastest ROI.

Non-IIMs like SPJIMR and XLRI lead the pack of PGDM institutes offering the highest ROI, according to the latest placement data and fee structure available on top B-schools.

While central university MBA departments like FMS Delhi and JBIMS are exceptionally ahead as compared to other B-schools owing to their low fee structure, IIM-L is the only IIM in the list of top 5 B-schools with fastest payback period.

To help CAT 2013 aspirants in deciding which Top B schools to choose and apply, we bring here a comparison of Top 10 B schools in India on the basis of their payback time. Payback period can be termed as the ROI (Return on Investment).  

FMS Delhi, JBIMS fastest on ROI:

The central university MBA departments like FMS Delhi and JBIMS sit on the top of this list.

While FMS Delhi which comes under University of Delhi has a fee structure of Rs 0.21 lakh only, the average placement for its passing out batch in 2013 was Rs 16 lakh. Therefore, a student at FMS gets his return on investment in just 5 days into his job.

Similarly, though JBIMS (University of Mumbai) has a higher fee structure of about Rs 2 lakh for its 2-year MBA programme, the average annual salary of Rs 15 lakh brings the payback period at this B-school below 50 days.

Which PGDM institutes beat IIM-A,B, C?

CAT 2013 aspirants will be surprised to know that top PGDM B-schools give a tough fight to IIMs in terms of ROI. SPJIMR and XLRI are above IIM-A, IIM-B and IIM-C on this parameter.

SPJIMR, Mumbai brings you the fastest ROI amongst top PGDM B-schools. While the fee structure for its two year programme is Rs 9.5 lakh, the average annual salary offered to the 2013 batch was Rs 16.13. Therefore, it takes only 215 days to get back your investment on the MBA programme at this B-school.

XLRI also list among the top 5 B-schools on fastest ROI. The fee for its two year flagship management programme is Rs 12 lakh. However, the average annual salary offered at the institute was Rs 16.2 lakh. This brings an ROI of just 270 days at the institute.

Though IIM Lucknow is ranked below IIM-A, IIM-B and IIM-C, the institute beats its seniors on the ROI factor. While the institute has a fee structure of Rs 10.8 lakh for its two-year programme, the average annual salary to its graduate was Rs 15.5 lakh. Hence, the payback period is just 254 days for the 2-year programme at IIM-L. In a bid to become more affordable to the aspirants coming from lower-middle class, IIM-L has even cut the fees by 10 per cent for the academic session 2013-15.

Top league of IIMs:

With a fee structure of Rs 13.6 lakh and average annual salary offered at the campus being Rs 18 lakh, IIM Calcutta offers a payback period of 275 days.

IIM-Bangalore and IIM-Ahmedabad stand on number 8 and 9 respectively with their respective payback period being 358 and 432 days.

NMIMS also falls in this league with its payback period of 320 days. The institute has fee of Rs 12.62 lakh and the average annual salary offered at the institute in 2013 was Rs 14.4 lakh.

The table below shows the list of country’s leading 10 B schools including the top IIMs viz. Ahmedabad, Bangalore, Calcutta and Lucknow along with their latest fee structure and average salary offered to their students from the last batch. The B schools are ranked on the basis of their Payback period.

Table 1: Payback period of Top 10 B schools




Name of the institute

Fee structure (in Rs lakh)

Average salary (2013)   (in Rs lakh)

Payback period (in days)

FMS, Delhi

0.21

16

5

JBIMS, Mumbai

2

15.32

48

SPJIMR, Mumbai

9.5

16.13

215

IIM L

10.8

15.5

254

XLRI Jamshedpur

12

16.2

270

IIM C

13.6

18

275

NMIMS

12.62

14.4

320

IIM B

17

17.3

358

IIM A

16.6

14

432

MDI Gurgaon

15.5

12.8

441

Source: Respective Institute’s website and MBAUniverse.com B school 2013 Rankings

Note: The fee structure excludes accommodation charges. Payback period days are rounded-off.

The payback period is calculated as:  Fee structure/average salary x 365

To get admission in the above list of B schools, you need to score very high percentile in CAT 2013/XAT 2014 exams.

So, apply to MBA Exams like CAT, XAT and NMAT to get opportunity of high ROI and fastest payback period after your MBA programmes.

Our last article brought you the list of Top B-schools where application process is open.

Stay tuned to MBAUniverse.com for more news and updates on MBA exams and top B-schools.