Is it worth opting for a 1 year MBA from ISB (Indian School of Business)

Now the initials questions that comes to your mind is what would be the learning outcomes and is the decision worth it from a ROI perspective.The program costs INR 36.07 lacs for a studio accommodation option along with 1.95 lacs for books, laptops, meal plans etc.Add to this the opportunity cost of ~INR 15-20 lacs for 4.2 years of work experience.Thus the cost is INR 50 lacs+ for the 1 year stint.
Unlike IIM ABCs of the world, where a 90% in Class 10, 12 and Graduation with a 99.5+ percentile in CAT is necessary for getting a chance to showcase the quality of your work experience in the interview, ISB is far less fixated with your GMAT score. While the average GMAT score for its Class of 2019 is of 709, there are candidates who have entered with a score of 600 as well. For people with substantive work experience, proving oneself on the CAT turf may be difficult. And ISB has no quotas for SC, ST and OBCs. Hence they clearly prefer GMAT and thus the likes of ISB PGP, IIMA’s PGPX and IIMB’s EPGP for becoming part of the premiere B-school vintage. They can thus articulate their leadership capabilities through the essays and interviews. So a 2 year PGP of IIM is unlikely to have someone with 12 years of work ex. ISB also has variants like YLP and EEO (Early Entry Option). Thus the ISB often bears part similarity with the 2 year and 1 year MBAs of the IIMs.
Similarly, there are pros of having a large batch size. If the age of the batch participants varies from 22 to 42 (average 26.6), you have a far greater diversity in terms of the cohort. Recruiters who come on campus have a huge talent pool to pick and choose from. Of course, one can always argue that with a large batch size to fill, it’s far easier for one to scrape through ISB’s admission process than the IIM ABCs. Yes, competition on campus is equally high and the ‘rat race’ for grades quite intense. Unlike IIMA PGPX where grade non-disclosure is followed for the 1 year PGPX, grades matter a lot at ISB.
Placements have been quite impressive at ISB, commendable for an institute that started only in 2001 and does not have a 40 year+ legacy like the IIM ABCs.
Sales & marketing and consulting constitute 20% and 18% of the offers made. You had 375 companies being a part of their placement process. So, this includes the AT Kearney, Bain, BCGS and Mckinseys of the world. Conglomerates like Aditya Birla Group recruit for the Lead & Leap leadership program. But the most famous in the lot i.e. Tata Administrative Services (TAS) does not come to ISB. The likes of Yes Bank, Philips and Tech M also recruit for their leadership program as also Axis Bank . Marketing honchos like HULs, P&Gs and Nestle’s etc. and tech giants like Google, Apple, and Uber etc. The Institute claims that a 160 % increase in salary of its alumni, three years after completion of the programme.
For those eyeing a job in Investment Banking from ISB must note that it will not be a realistic dream. Big-bulge I-Banks recruit only from the 2 year PGP of IIM A and C and also some from IIM B. I know students who graduated from ISB and made it to I-Banking/Venture Capital/Private Equity through their personal network or eventually landed there through the circuitous route, say joining EY Transaction Advisory post ISB and then joining a PE firm through connects built in course of assignments.
One issue with the placement statistics is that ISB does not issue an audited placement report. What it offers is the “Mid 80 percentile offer average of Domestic Salary”. Now this is based on the offers and not the ones accepted. So, let’s say there were 3 offers of INR 40 lacs, 38 lacs and 36 lacs p.a. made to someone with substantive work experience. Now he/she accepts the 40 lacs offer, the Institute still considers the 38 lacs and 36 lacs p.a. offer for this computation.
Also, ISB does not offer a degree or diploma. It gives a certificate to the graduates,No recognition by AICTE or the UGC. However, ISB's PGP is accredited by the AACSB and EQUIS
About the cost, SBI offers an overall loan of INR 40 lacs for ISB with up to 30 lacs as collateral free. With 8.35% floating and a tenure of 13 years, you can consider it as a self-branding cost EMI of INR 35-40k per month.
So ISB allows you to get the coveted MBA tag, maybe at a higher cost w.r.t. IIMs or FMS.You get to study from world faculty including Wharton’s and Kellogg’s.Great opportunities on campus through the clubs and student activities.Plus a very active alumni base.It’s a private institute, far less bureaucratic than the IIMs.
The 1 year MBA is ~50 lacs down the investment funnel. Be careful of all the caveats. Look at it clearly through you want from the program and how many boxes are ticked.Also, it has to be viewed holistically over the long run and not just judged the short term numerical metric of entry salary- exit salary.

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