I am a guy who graduated from IIT Bombay (B.Tech) last year when the recession had begun. I sat for the placements but couldnt make through the interview for the few companies that interviewed me (for some reasons). As a result I am now an unemployed and confused IITian who happens to be a burden on society and my family. From the above, many must have already concluded that my grades were not good (a GPA in the range of 5). My main problem is not that I am jobless and unemployed (it is a secondary one), but that I have no explanation to people when they ask about my state. My high school colleagues who did their engineering from other colleges in different states, are today employed and happy with mostly good jobs at hand, with salaries not any less than many IITians. My state is so bad that now I completely regret being an IITian. Its difficult to face society now and I have many times contemplated running away from everyone, but the only thing holding me back is not to bring insults upon my parents. Before I came to IIT, I had got admission into a private college in a top branch. I totally regret rejecting that college for IIT today. That college had registered 100% placements for their students. It has become so ridiculous now that I am even ashamed to mention that I am an IITian. Many times people ask me from which college I have studied and the only reply I give is some random college from Mumbai. I know many people might brand me as a loser, but I really dont care. I was a good student throughout my school years but was not one the college. Whats more interesting is that many of my school colleagues who didnt perform good in their studies are now having plum jobs at their hands. So, my advice to all the IIT aspirants would be to work hard for IIT and continue working hard after coming to IIT (in case you get selected). However, if you dont get selected then dont lose heart because life outside IIT is as good as inside it. I can guarantee you that most of the IITians who get placed, dont really get salaries any different form graduates of other colleges. Only a few top cream, even at IIT, end up getting the most sought after offers with very high salaries. I really dont have any question at all. I just registered to write this. Thank you.

Hi

Dude!!! you are not the only 5 point someone out there, there is a whole crew of people like you passing out every year from iits, and they are NOT losers. I graduated from iit delhi in 2008 and i had a number of friends like you, ALL of them ended up with something good, a good job or an MBA, even IAS. 

But i have seen people losing heart and getting depressed because of degree extension. But lemme tell you one thing, you can completely hide the number of years you had in IIT, just mention the the year you passed out in (and you know that your degree certificate do not say the number of years you spent in iit, not even your entry year). Even if it pops out during the hiring process, be prepared with a reason of the extension (you can be completely honest here).
If you have some gap after IIT, you can even out that also. Get involved in some startup (may be with your batchmates, if any), because its easy to get a certi from these guys even for the period when you were not involved with them and its counted equivalent to work ex. get in touch with me, i have a few friends who are into entrepreneurship. OR start your own startup and prepare for MBAs.

Let me tell you one thing, there are people (with good GPAs) who prepare for IAS for 2-3 years and still do not make it, they also find it difficult to get jobs afterwards. 
BUT, what i want to say is that you are just an undergraduate, there are a whole lot of opportunities lying ahead you, where you can make up for your messed up undergrad. Go for MBA, not just IIMS, but any college in top 15 in India is worth the shot (they all have avg CTC more than 10 LPA, ). While you prepare for MBAs, you can get associated with some NGO in mumbai, its easy to get a job in an NGO, they pay less, but they give you an opportunity to meet different people, socialize and boost up your confidence (which is very crucial for you) PLUS its counted as a good experience by MBA institutes.
Get some certifications, like CFA or FRM which will help you get a job in finance. You can do this along with your MBA preparations. 
people go for IAS also in a situation like yours, but i wouldn't recommend that to you. Its very demanding and if you do not happen to make though it, you will see the worst state of your life. 

THINK LONG TERM. LOOK AT THE BIGGER PICTURE.

You didn't do well in your undergrad, so to make up for that you will have to work harder for next 2-3 years than your peers. You will have to multitask (preparing for mba+CFA or any other certification+NGO or any job or any startup... all at the same time). BUT i ascertain you of one thing, that YOU WILL make up for it.
Being an MBA student (1st yr), i can tell you for sure that someone like you, when enters into a post graduation, usually do better than those who did well in their undergrad. And after you come out of MBA, your IIT GPA will hardly matter. 

While you do any of the things i said, never stop your job hunting. Exploit your IIT contacts, call as many people as you can. Even if you apply through any job site, do call them back to follow up (otherwise they don't respond). But the contacts should be your priority. Meet your as many batchmates as you can and discuss about it. Let everyone know that you are desperately hunting for a job. They will all try to hepl you get one.

Good luck

Regards
Parvesh