Let's say 2 students, Ram and Shyam go for placements, Ram has 86% and Shyam has 65%. (#Reason1 if you don't have at least 65% you won't be able to appear even for written)
Ram-Shyam both clear written and reach the interview round, whom will the interviewer appreciate more? (#Reason2 higher percentage gives you edge in interviews)
Shyam's low percentage will not matter only if he has a solid coding profile (Codechef, Codeforces etc) or he has a solid dev profile (GitHUB, Full Stack).
Or if Shyam is able to give satisfactory explanation when interviews asks why he has low percentage?
Net net, in on-campus you can get selected with low percentages as well but having higher grade will not harm either!
For off campus, surely percentage is a key criteria for companies to shortlist/prioritize among thousands of applicants.
I know its not a perfect criteria, but it is not going to change at least by the time you appear for placements. So morals are good but you need to be practical as well.
Let me know what you think