Investment Banks in India Careers and Salaries

Investment banks in India are a great place to start your career in finance, with many top firms having a presence in the country. You can expect to earn a high salary, with average annual salaries ranging from ₹1.5 million to ₹5 million.

To break into the industry, you'll typically need a bachelor's degree in a relevant field such as finance, economics, or accounting. Many investment banks in India also require candidates to have a strong academic record and relevant work experience.

The investment banking sector in India is highly competitive, with many top firms competing for a limited number of roles. However, with the right skills and experience, you can land a job at a top investment bank and enjoy a high salary and great career prospects.

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Investment banks in India have grown impressively over the years, with fees going from ~$100 million USD in 2000 to ~$1.3 billion in 2023. This may look impressive, but global investment banking fees are typically $100+ billion per year.

India has ~17% of the global population and ~4% of the global GDP, but only ~1 – 2% of the global IB fee pool. If you look at just M&A deal activity involving any Indian company, the volumes are typically between $100 and $150 billion USD per year.

Investment banks in India offer a wide range of services to help companies grow and expand their market share. They help companies make mergers and acquisitions, manage capital issues, and provide debt syndication services. They also advise companies on buybacks and takeovers, and offer corporate advisory services.

Here are some of the top services offered by investment banks in India:

These services help companies tap into the right opportunities at the right time, ensure solid growth, and adhere to compliances and regulations as per SEBI.

The landscape of investment banking in India is dominated by a few top players. Here are the top 10 Indian investment banks as per deal volume in 2016:

Domestic banks have a strong presence in the Indian market, with Avendus, Kotak, JM Financial, ICICI, and Axis being considered among the best. These banks tend to perform well in equity and debt deals involving Indian companies.

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Investment banks in India typically require a minimum of a bachelor's degree in a relevant field such as finance, economics, or accounting.

To get hired, you'll need to have a strong academic record, with many banks looking for candidates with a first-class degree from a top-tier university.

With a strong foundation in finance and accounting, you can consider roles such as financial analyst, investment banking analyst, or management trainee.

These roles often involve working long hours, especially during peak periods, so be prepared to put in the time and effort required to succeed.

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The recruitment process for investment banking in India is quite different from other industries. Very few "true" front-office roles are available, with only around 100 Analyst positions offered per year across the entire country.

You'll often find many "support" and "KPO" roles at banks, but these jobs differ significantly from traditional investment banking roles and pay much less. These roles mostly involve supporting pitch books and deal execution in other regions, not working on domestic deals from start to finish.

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The top banks in India primarily hire from the top three Indian Institutes of Management (IIMs) in Ahmedabad, Bangalore, and Calcutta, with only the top 10-15 students winning roles at bulge brackets or top domestic firms. Over 300,000 students apply each year for these ~1,200 spots.

In India, the MD directly screens investment banking resumes, making it a tough process. Insider information is not a reliable way to crack the interview, as trustworthiness is a top priority in investment banking.

The selection process in investment banking is based on technical skills, leadership ability, communication and interpersonal skills, and self-motivation. The MD selects resumes, followed by a screening process that weeds out most candidates in the first round.

In the final round, HR briefs candidates on expectations, and the offer is released to the most suitable candidate. The MD emphasizes that GPAs are only important for initial screening, but what truly matters is a candidate's willingness to make their mark in the industry.

Here's a rough breakdown of the selection process:

Salaries in investment banking in India can be quite good, considering the cost of living in the country. The compensation is indeed attractive, with many professionals able to live a very good lifestyle on a salary of $100K - 150K USD per year.

According to Glassdoor.co.in, the average salary of investment banking analysts in India is INR 9,20,401 per annum. This is a relatively high average, and it's clear that experience matters a lot when it comes to salaries in the industry.

Here's a breakdown of the estimated salary ranges for different roles in investment banking in India, based on international bulge brackets as of 2024:

As you can see, salaries can vary greatly depending on the role, experience, and performance. It's worth noting that bonuses are highly variable and depend on closed deals at the higher levels.

Working in an investment bank in India can be a lucrative career move. With high salaries and bonuses, professionals can earn up to ₹1 crore in a year, making it an attractive option for young and ambitious individuals.

Investment banks in India also offer a range of benefits, including health insurance, retirement plans, and paid time off. This can lead to a better work-life balance and improved overall well-being.

In addition to these benefits, investment banks in India often provide opportunities for career advancement and professional growth. With a strong track record of promoting from within, individuals can quickly move up the career ladder and take on new challenges.

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Investment bankers in India can earn a good living, considering the cost of living in the country. The compensation is quite good, especially when compared to the U.S. rates.

You can live a very good lifestyle in India on $100K - 150K USD per year. This is a realistic expectation, considering the cost of living in India.

The base salaries and bonuses vary depending on the role and the firm. Here's a breakdown of the estimated ranges:

Keep in mind that bonuses are highly variable and depend on closed deals at the higher levels.

The culture in investment banking in India is not something to be admired, with a huge imbalance between risk-taking and work devotion. This means that only those who are willing to take huge risks and work long hours will thrive in this field.

In investment banking, your risk-taking abilities and initiatives directly determine your salary, not your passion for the job. Unfortunately, not all candidates are suitable for investment banking jobs in India because of this.

The job market for investment bankers is highly competitive, with few staying in one organization for the long term. This is because competitors offer them higher positions, making job security a major concern.

Investment bankers in India often work for 16-18 hours a day to clinch deals, with no work-life balance in sight. The only upside is the high salary, which can be lucrative for those who can stick to this demanding culture.

Here are some key takeaways about the culture in investment banking in India:

Teams in India can be quite large, especially in domestic banks, which may lead to lower base salaries but also a more structured path to promotion.

You'll have more deal exposure in India, but it may be harder to get promoted due to limited opportunities for advancement.

Team sizes in domestic banks tend to be bigger, with more division between different groups, which can result in more manageable work hours, around 70 hours per week for Analysts.

In contrast, international banks in India may have smaller teams and a more fluid structure, which can lead to longer work hours, often exceeding 80 hours per week for Analysts.

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Many people think that investment banking in India is a stepping stone to other industries, but the reality is that it's incredibly difficult to advance to the top levels.

You don't necessarily need to do banking to get into private equity, venture capital, or corporate finance, but you do need to put in a lot of hours to get to a good position.

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In fact, some private equity firms hire from Big 4 firms, consulting firms, and even corporate finance roles at conglomerates like Reliance Industries.

The top PE/GE/VC firms operate in India, but deal activity tends to be more limited, making it harder to get in and advance.

International firms still pay high salaries, bonuses, and carried interest in USD, but it's a myth that you can work 2-3 years in investment banking and then take a different route.

If you do decide to exit investment banking in India, you may have options like private equity, hedge funds, venture capital, corporate finance, or entrepreneurship.

However, know that each of these options would require you to invest your time and energy in looking through financial analysis, often for more hours than you'd expect.

Here are some of the options you might consider:

Keep in mind that exit opportunities in India are limited due to rules and regulations that make it difficult to raise funds locally, and liquidity is often limited, with holding periods extending to 10 – 15+ years.

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Avoiding investment banks in India might be the best decision for many. It's absurdly difficult to win a true front-office IB role, and even if you do, advancement is not guaranteed.

If you're already working in India and want to break into investment banking, consider doing a Master's in Finance or MBA in another region. This can give you a better chance of advancing in your career.

In India, buy-side roles are underdeveloped compared to other regions, which means many bankers stay in their roles long-term. This lack of mobility can be frustrating and limit your career growth.

If you work in India but decide to leave for another country, you may not be competitive in other markets. Your savings will also not go as far as they would in other countries.

It's worth considering options like the Big 4 firms, equity research, tech companies, or boutique banks if you can't leave India. These roles can give you valuable experience and potentially lead to a lateral hire in an investment bank.

For foreigners thinking of moving to India for investment banking, it's probably not worth the trouble. Unless you're already at a senior level with strong connections to the country, you might not find the experience rewarding.

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India's investment banking industry has a strong presence globally, with many Indian banks partnering with international banks to expand their reach.

HSBC India, a subsidiary of HSBC Holdings, has a significant presence in the country, offering a range of financial services, including investment banking.

Morgan Stanley, a leading global investment bank, has a strong presence in India, with operations in both Mumbai and Bengaluru.

The Reserve Bank of India (RBI) has also been actively promoting foreign investment in the country, which has led to increased partnerships between Indian and international banks.

Deals worth billions have been facilitated by these partnerships, including the $3.4 billion acquisition of Piramal Capital by TPG and Bain Capital.

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ICICI Bank is one of the largest private sector banks in India, with a market share of around 15%. It has a strong presence in the country's investment banking sector.

Kotak Mahindra Bank is another major player in the Indian investment banking market, with a significant presence in areas like mergers and acquisitions, equity research, and debt capital markets.

Axis Bank has a strong corporate and investment banking division, with expertise in areas like corporate lending, transaction banking, and investment research.

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In the Indian investment banking industry, several major players have set up group entities, distributing their core and non-core business segments. These big investment banks include SBI, IDBI, ICICI, IL&FS, Kotak Mahindra, and Citibank, among others.

SBI, IDBI, and ICICI have converted themselves into full-service commercial banks, also known as Universal banks. This transformation has allowed them to offer a wide range of investment banking activities.

The Indian investment banks have not yet expanded globally, although some banks do have a presence overseas. This limited global reach is a notable aspect of the Indian investment banking landscape.

Niche players and subsidiaries of public sector banks make up the middle level of the industry. Some of these banks, like Canara Bank and Punjab National Bank, have had successful merchant banking activities.

Merchant banks structured as NBFCs, such as Alpic Finance and Rabo India Finance, also operate in the Indian market.

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Morgan Stanley is a global financial services firm with a significant presence in India. Its headquarters is located in New York, US.

Morgan Stanley has multiple offices in India, including Mumbai and Bengaluru. The company also has a large workforce, with over 60,000 employees.

If you're interested in working for Morgan Stanley, you can check out their careers page at https://www.morganstanley.com/people.

Veda Corporate Advisors is a boutique and mid-market Investment Bank based in Chennai. It is one of the largest Investment Banks in Chennai. Veda Corporate Advisors was established in 2003.

Veda Corporate Advisors is a boutique Investment Banking Firm, which means it specializes in providing high-end financial services to its clients. The firm employs people with high professional acumen and serves clients in services like Mergers & Acquisitions, Structure Debt Finance, and Private Equity.

Veda Corporate Advisors has a presence in two cities: Chennai and Bengaluru. This allows the firm to cater to a wider range of clients across the country.

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UNITUS Capital is India's first established Impact based Investment Banking Company, founded in 2008. It's headquartered in Bengaluru.

Founded in 2008, UNITUS Capital has been a pioneer in the impact-based investment banking space. This company is engaged in providing services like Structure Debt Finance, Private Equity, and Corporate Advisory to companies creating a positive impact.

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Some of the key services offered by UNITUS Capital include Structure Debt Finance, Private Equity, and Corporate Advisory. These services cater to companies focused on creating a positive impact in various sectors.

The company's focus areas include Environment related companies, Food & Agriculture, Micro Financing, and Fin-tech. These sectors have the potential to drive significant positive change.

Here are some key details about UNITUS Capital:

In India, investment banks are governed by a complex regulatory framework that ensures their operations are in line with the country's laws and regulations.

All investment banks incorporated under the Companies Act, 1956 are governed by the provisions of that Act.

The type of regulation an investment bank is subject to also depends on its business model - if it's a universal bank or a non-banking finance company, it's regulated by RBI under the RBI Act, 1934.

Here's a breakdown of the types of investment banks and the regulations they're subject to:

The future of finance in India is looking bright, thanks to the vast untapped potential of investment banking in the country.

The scope for investment banking in India is enormous, with much of it still unexploited. This presents a significant opportunity for growth and development.

As technology and market developments continue to influence the capital market, investment banks in India are poised to benefit from the resulting impetus to growth.

With many pure merchant banks and advisory firms looking to convert themselves into full-service investment banks, their markets are likely to broaden and their service deliveries become more efficient.

The Indian investment banking industry has a fascinating history. Till the 1980s, the industry was mainly focused on debt services, with financial institutions providing term lending and banks and non-banking financial companies offering working capital financing.

The capital markets were relatively unorganized and limited to stock broking activity. In the early nineties, the capital markets opened up, and merchant banking and asset management services started to flourish.

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Many banks, NBFCs, and financial institutions entered the merchant banking, underwriting, and advisory services driven by the boom in the primary market. This period saw a significant growth in the industry.

However, the industry faced a huge downturn due to the recession in the capital markets. The regulatory developments that followed, including separate registration, licensing, and capital controls, proved to be an impediment for the growth of the investment banking industry.

The structure of the Indian investment banking industry is quite unique. This is due to regulations that prohibit commercial banks from performing all investment banking functions.

One key reason for this is that commercial banks are restricted from getting exposed to stock market investments and lending against stocks beyond certain limits under the RBI and Banking Regulation Act.

Merchant banking activities can only be carried out after obtaining a merchant-banking license from SEBI. This adds an extra layer of oversight and accountability.

Merchant bankers, excluding banks and financial institutions, are not authorized to carry out any business other than merchant banking. This helps to maintain a clear distinction between different types of financial activities.

To avoid conflicts of interest, equity research activity has to be carried out independently of merchant banking activity. This ensures that research is unbiased and not influenced by the bank's own interests.

Stock broking business must be separated into a different company. This helps to maintain a clear separation between broking and banking activities.

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The regulatory framework for investment banking in India is quite complex, but I'll break it down for you.

Investment banks incorporated under the Companies Act, 1956 are governed by that Act.

This means that they have to follow the rules and regulations set out in the Act, which is a comprehensive piece of legislation that covers various aspects of company law.

Some investment banks, like SBI and IDBI, are incorporated under a separate statute and are regulated by their respective statute.

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This means that they have to follow the rules and regulations set out in their specific statute, rather than the Companies Act.

Universal banks that function as investment banks are regulated by RBI under the RBI Act, 1934.

This means that they have to follow the rules and regulations set out in the RBI Act, which is a key piece of legislation that governs the banking sector in India.

Non-banking Finance Companies that function as investment banks are also regulated by RBI under RBI Act, 1934.

SEBI governs the functional aspects of Investment banking under the Securities and Exchange Board of India Act, 1992.

This means that SEBI is responsible for overseeing the investment banking industry and ensuring that it operates in a fair and transparent manner.

Investment banks that carry foreign direct investment either through joint ventures or as fully owned subsidiaries are governed by Foreign Exchange Management Act, 1999 with respect to foreign investment.

Here's a summary of the regulatory framework for investment banking in India:

Investment banks in India face several challenges, including a highly competitive market with over 50 banks operating in the country. This intense competition makes it difficult for banks to stand out and attract clients.

Regulatory hurdles are another major challenge for Indian investment banks. The Reserve Bank of India (RBI) imposes strict rules and regulations that can be time-consuming and costly to comply with.

The lack of a well-developed secondary market in India limits the ability of investment banks to buy and sell securities, making it harder for them to manage risks and generate revenue. This is particularly challenging for foreign banks operating in India.

Indian investment banks also struggle with a shortage of skilled professionals, particularly in areas such as risk management and compliance. This can lead to a higher staff turnover rate and increased costs for recruitment and training.

The Indian investment banking industry is heavily reliant on foreign capital flows, which can be volatile and unpredictable. This makes it difficult for banks to plan and manage their business effectively.

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