Rajat Gupta's conviction dents ISB image

The verdict is out former Goldman Sachs director Rajat Gupta has been found guilty of insider trading in the US. But back home this raises the question. Is Gupta's conviction likely to affect the image of ISB, one of the country's top B-schools, co-founded by Gupta, reports Appaji Reddem and Payaswini Upadhyay of CNBC-TV18.

For many Indians Rajat Gupta was a role model. His achievement of the archetypal "American dream" was one to emulate.
But with the former head of Mckinsey & Co and director at Goldman Sachs now convicted of insider trading charges in the US, the dynamics have changed.
While the conviction has shocked India Inc, questions are being raised over whether this will also adversely affect the reputation of the Indian School of Business in Hyderabad. A B-school co-founded by Gupta. While ISB authorities have expressed disappointment at the verdict the student community is apprehensive.
Jaspreet Singh, aspiring MBA Student, says that "when we compare ISB with London School of Economics and Kellogg, absolutely, as an aspirant, I feel that, is my future safe? Because I wouldn't like to go to an institution where in the founder himself was convicted in a white collar crime; the other directors are also involved into that, so I don't know like what my future will be. Is my future in safe hands, I'm in a dilemma right now whether to join ISB or not."
Besides Gupta's fall from grace is not the only spot on ISB's canvas. In the past, other board members like Anil Kumar and Nimmagadda Prasad and former dean M Rammohan Rao had to resign due to alleged involvement in seperate scams. All of this, recruiters say, could have an impact on ISB's image.
Sumeet Srivastav, regional head, Pyramid IT Consulting, says that "yes, I'll have to think across, I'll have to re-analyse and review on any student I'm speaking to who is from ISB, who's an ISB student. I have to keenly look upon, consider case to case basis, it's not all about the knowledge he's carrying, it's the way he's displaying the knowledge."
Since the outbreak of the scandal the placements of the institute did witness a minor dip in numbers last year. But, with Rajat Gupta's conviction the road for ISB could get tricky. Also watch the accompanying video.