According to a survey, only about 21 per cent of the graduates of master in business administration (MBA) were employable.

A new report by MBAUniverse. com and MeritTrac on employability of MBAs in 2012 showed the shocking results. The survey was conducted across the nation and covered 2,264 MBAs from 29 cities and 100 B-Schools. The participants were asked to appear for tests by recruiters.

"Perhaps with the increasing number of institutes and growing number of students vying for MBA degrees, the average quality of MBA graduates has come down," states the report. A earlier study by MeritTrac in 2007 has said that 25 per cent of MBAs were employable.

The study also showed that the quality of the graduate depends upon the city, where the management school is located. Even as there has been a significant increase in the number of MBA institutes since 2008, the number of CAT and GMAT applicants has fallen. The number of students who appeared in Common Admission Test in 2008 was about 3,00,000 compared to 2,06,000 in 2011.

SS Mantha, chairman of the All India council for Technical Education, the governing body for management courses in the country said that the quality of institutes differ in different cities.