Investment banking In India | Top Banks List | Salary | Jobs

Investment Banking in India

Do you dream of being a high-flying professional who wants to make it big in the investment world, but don’t have a clue where to look?

Here’s your answer. If you want to move into Investment Banking, then you should know the overall investment banking scenario in India, List of Top Investment Banks, Kind of Services Offered, their Culture, investment banking Salaries in India, investment banking jobs in India and whether you are fit for Investment Banking Profile.

Investment Banking in India

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Investment banking In India | Top Banks List | Salary | Jobs (wallstreetmojo.com)

In this article, we will go in-depth about the investment banking world prevalent in India.

Overview of Investment Banking in India

Before going into the nitty-gritty of investment banking in India, it’s important to throw some light on the history of investment banking in India.

It all started in the 19th Century. During that period, European banks first established their trading industries in the land of India. Since that ancient time, foreign banks have taken the reign of investment banking in India. But that didn’t last for a long time.

In the 1970s, State Bank of India started to spread its wings and created a bureau of merchant banking. And in the same decade, ICICI bank started offering various merchant banking Merchant Banking Merchant Bank is a company that provides services like fundraising activities like IPOs, FPOs, loans, underwriting. They only deal with companies and businesses.read moreservices.

After a decade, banking became the thing of many and more than 30 merchant banks, financial institutions, and commercial banksCommercial BanksA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read more started setting up their operations.

However, until the 1980s, banking didn’t get the hype it deserved. In the 1990s, banking became an industry when more than 1500 bankers registered with SEBI (Securities and Exchange Board of India).

To regulate these huge numbers of banks, it was required to build an institution that will help banks adhere to the compliance and regulations. And that’s how the Association of Investment Bankers of India (AIBI) got started.

The objective of AIBI is to regulate the legal and ethical practices among members and also to promote and encourage the expansion of the industry.

Under AIBI, now there are many banks and financial institutions are registered. Have a look at the following institutions which are registered under AIBI and have already made their name in the investment banking industry in India –

  • Axis Bank Ltd.
  • Barclays Bank PLC
  • BNP Paribas
  • Central Bank of India
  • Credit Suisse Securities (India) Private Ltd.
  • Deutsche Equities India Private Ltd.
  • Edelweiss Financial Services Ltd.
  • HDFC Bank Ltd.
  • HSBC Securities & Capital Markets (India) Private Ltd.
  • ICICI Securities Ltd.
  • IDBI Capital Market Services Ltd.
  • JP Morgan India Private Ltd.
  • Morgan Stanley India Co. Private Ltd.
  • Religare Capital Markets Ltd.
  • SBI Capital Markets Ltd.
  • SMC Capitals Ltd.

Recommended Courses

Services Offered by Investment Banks in India

There is a whole gamut of services offered by the investment banks in India. Following are top services that stand out –

List of Top Investment Banks in India

There are many investment banks in India that offer excellent services and have been gradually expanding their reach. But among all of them, here is the list of top 10 Indian investment banks as per the deal volume (these deals are purely based on M&A deals) –

RankName of the Investment BankNo. of Deals (2016)
1Ernst & Young Private Ltd.26
2Price Water House Coopers, Investment Banking Arm11
3Deloitte Touche Tohmatsu India, LLP11
4O3 Capital Global Advisory Private Ltd.8
5KPMG India Private Ltd.8
6Axis Capital Ltd.7
7Standard Chartered Bank, Investment Banking DivisionInvestment Banking DivisionInvestment Banking Division is a segment of the investment bank offering advisory & corporate finance services. It executes mergers & acquisitions, deals with capital raising, & handles several kinds of advisory mandates. read more6
8Avendus Capital Private Ltd.6
9JM Financial Institutional Securities Ltd.6
10KPMG Corporate Finance LLC6

source: vcedge.com

Now, let’s have a look at the list of top 10 investment banks as per deal value (M&A) in 2016 –

RankName of the Investment BankDeal Value (in $ millions)No. of Deals
1Arpwood Capital Private Ltd.21,891.714
2JM Financial Institutional Securities Ltd.13,599.776
3Morgan Stanley11,950.004
4Ernst & Young Global Ltd.10,898.724
5Kotak Mahindra Capital Co. Ltd.10,149.964
6Ambit Private Ltd.9,730.003
7DH Consultants Private Ltd.9,730.001
7Citigroup Global Markets India Private Ltd.9,730.001
8Lazard Ltd.9,407.424
9J.P. Morgan Securities LLC8,000.001
9Evercore Partners Inc.8,000.001
10Standard Chartered Bank, Investment Banking DivisionInvestment Banking DivisionInvestment Banking Division is a segment of the investment bank offering advisory & corporate finance services. It executes mergers & acquisitions, deals with capital raising, & handles several kinds of advisory mandates. read more3,667.806

source: vcedge.com

Now, let’s look at the list of investment banks that have topped the list in 2016 in terms of IPO in the domestic market –

RankName of the Investment Bank
1ICICI Securities
2Edelweiss Financial Services
3Axis Bank
4HSBC
5Kotak Mahindra Bank
6IIFL Securities
7IDFC Bank
8State Bank of India
9JM Financial Institutional Securities Ltd.
10Elara Capital

The best part of this list is that only one foreign bank has been included in the list, i.e. HSBC. Remaining all 9 banks belong to India. That means, the reign of foreign investment banking has been declining and more and more Indian investment banks are coming up on the top.

Recruitment process – Investment Banks in India

If you ever dream of being part of the investment banking industry in India, here’s how you can crack the code. But a word of caution – thousands and thousands of students are going the same route and as a result, you may get lost in the crowd.

Have a glance at the recruitment process of these investment banks in India, so that you can prepare well and reach your dream jobs –

    • No HR business: As the investment banking industry in India is quite different, rarely HR goes through investment banking resumes. It is done by MD directly. As investment banking professions are not for the faint-hearted, it’s important that the screening is done by the most important executives in the business.
    • Never try to tap insider’s information to crack the interview: As an investment banker, you need to be trustworthy as you will be handling millions of bucks of important clients. So, don’t try for any quick fix. Rather try to highlight why you are a good match for the job.
    • Selection process: Selecting the best candidates for investment banking is quite different than other sorts of jobs. Usually, the candidates are judged on the basis of their technical skills, leadership ability, communication & interpersonal skills and self-motivation. First of all, the resumes are selected by the MD and then the shortlisted candidates are called for the interview. During the first round, most of the candidates are screened out. Only a few best candidates fit the bill and asked for the last round. If the number of candidates is huge, then there is a chance of biases as not all interviewers would be able to all the candidates. In the final round, HR will brief the candidates about what they can expect during the interview. And then on the basis of consensus, the offer is released to the person who turns out to be most suitable for the company and its clients.
    • The most important thing: When an MD of an investment banker asked what is the one thing that separates the best candidate from the rest, he mentioned that GPAs are only important for first time screening; but ultimately what matters most is the willingness of the candidate to make their mark in the investment banking industry. He also mentioned that most of the candidates apply in investment banking jobs in India just for money; very few want to go for the love of investment banking and they are the best of the lot in most cases.

Culture in Investment Banks in India

Investment Banking Salaries in India

According to Glassdoor.co.in, the average salary of investment banking analystsInvestment Banking AnalystsInvestment Banking Analyst works with investment banking team and expertise in the area of Accounting, Financial Modeling, Project financing, Project Valuation, and Financial statement Analysis. These analyst has deep knowledge in Excel and they are good at VBA to analyze the market data and financial modeling. The analytic work consists of building a financial model for different projects like Infrastructure projects (i.e. Power projects, real estate, etc.).read more in India is INR 9,20,401 per annum.

And here’s a list of the salaries of different investment banks in India –

Investment Banking Salary in India (Wallstreetmojo)

source: Glassdoor.co.in

Let’s have another perspective offered by Payscale.com.

According to Payscale.com, the average salaries for Associate – Investment Banking is INR 989,562.

Investment Banking Salary in India (Wallstreetmojo) - Payscale

Let’s also see the common career paths of Associate – Investment Banking in the industry –

Investment Banking Career Paths

Now, who are the popular employers for Associate – Investment Banking? Let’s have a look –

Popular Employer salaries

source: Payscale.com

But how experience affects salaries? Let’s have a glance –

Investment Banking Experience

source: Payscale.com

That means it is clear that experience matters a lot in terms of salaries in the investment banking industry. You will make more money as you get more exposure and learn more skills.

Investment banking in India is certainly a male-dominated industry. From the report of Payscale.com, 89% are male and only 11% are female holding similar positions in the investment banking industry.

also, have a look at Investment Banking Associate SalaryInvestment Banking Associate SalaryAn Investment Banking Associate is hired by an investment bank. An Associate can be a promoted Analyst after three or four years, or he can be hired directly from a reputable business school. A average annual compensation for an Investment Banking Associate is from $75,000 to $250,000.read more

Investment Banking in India – Exit Opportunities

If you get bored in investment banking in India or can’t seem to take the pressure, you may have few options to go to like –

However, know that exit from investment banking in India will not always seem worthy especially if you are looking for fewer hours of work and you don’t like the financial analysisFinancial AnalysisFinancial analysis is an analysis of finance-related projects/activities, company's financial statements (balance sheet, income statement, and notes to accounts) or financial ratios to evaluate the company's results, performance, and trends, which is useful for making significant decisions such as investment, project planning and financing activities.read more.

In each of the above options, you need to put in a lot of hours (often more) to get to a good position and each of the options would need you to invest your time and energy in looking through financial analysis.

Thus, exit only when you know that you want to explore other opportunities and dimensions; not because you want to escape the daily grind. The idea that you will work 2-3 years in investment banking and then will take a different route is nothing but a myth.

In the final analysis

Investment banking in India is a bit different than it is in Europe and the USA. India is still an emergent market for investment banking. Slowly the Indian market is ripening and realizing the value of investment banking.

If you want to make a career in investment banking in India, make sure that you have enough practical knowledge (internships) about the market along with a high GPA and MBA from a top-notch B-School.

Reader Interactions

Comments

  1. Harsh says

    I wanted to do this … My interest is increasing day by day… So I hope you help me out in this .