One of the fastest-growing sectors in the country, with a huge demand, is the investment that provides a good pay scale, perks, and benefits to employees. Investment banking is a popular career option amongst aspirants who want to get attractive salary slip packages during their careers.
Investment banking is not only in demand but also promises future growth with time. With new agencies and establishments rising each day, the need for expert assistance, advice, and handling of financial transactions is now more than ever. It results in more demand for investment bankers in India and across the world. If you also want to get a job as an investment banker, you should know about the investment banker’s salary, job profile, career, roles and responsibilities, future growth, etc. For this, here is a blog for you
Who is an Investment Banker?
An investment banker is a financial analyst concerned with handling complicated financial transactions. They work in Financial Institutions like Goldman Sachs, Morgan Stanley, and JP Morgan. They help raise capital for entities such as authorities and companies. Students can pursue various investment banking courses, along with Marketing Management and Chartered Accountancy, to choose an Investment Banking career course.
Investment bankers engage in buying and promoting security while helping in complicated corporate transactions consisting of mergers and acquisitions. Small agencies who want to go into the capital market are required to undergo the IPO technique, investment bankers are the ones who help them.
What Does an Investment Banker Do?
The work of Investment Bankers is to help businesses, and make them wealthy by maximizing their cash. An Investment Banker’s work may be divided into two categories – assessing the financial elements of a company and helping it in attaining its required financial dreams. They analyze the economic state of affairs of the agency alongside capital needs and come together with a roadmap to achieve their targets.
Usually, a company provides crucial economic records to an Investment Banker. The Investment Banker may also create a method that consists of buying and selling shares, selling bonds, obtaining debt, or a mixture of those relying on the company’s economic health and dreams.
Types of an Investment Banker
Here are the various types of investment bankers and the careers associated with it.
- Financial Planner: A Financial Planner is a person experienced in investment and finance who allows individuals and companies to meet their long-term economic dreams. An economic planner works over various factors like budgeting, investments, saving for retirement, tax planning, insurance, and more.
- Credit Manager: A credit manager is responsible for the whole credit score granting procedure, along with the applications of credit score regulations. As a credit manager, one is required to evaluate the credits of clients and investigate the credit worth of clients, to optimize the company along with reducing the bad debt.
- Certified Management Accountant: A Certified Management Accountant is a person who possesses knowledge in regions of financial making plans, analysis, control, decision support, and professional ethics. They work with interior companies of all sizes, industries, and brands, including production and services, public and personal organizations, and multinational businesses worldwide.
- Accountant: An Accountant is responsible for ensuring that the agency doesn’t cross overboard with costs. They perform business operations; their duties encompass the collection, recording, data analysis, and presentation of an enterprise’s financial operations to the stakeholders. The role of an accountant can change if the company is big.
- Financial Advisor: A Financial Advisor assesses one’s financial situation, knows what a person wants to do with cash, and helps in developing a plan to attain one’s financial goals. They enable individuals and companies to reduce spending, repay their debt, and keep and invest for the future.
- Account Manager: An Account Manager makes relationships with their clients and keeps a record of other beneficial contacts. Key account manager duties include accumulating all of the data about clients together with ID documents.
Investment Banker Salary in India
Investment bankers’ salaries range depending on their knowledge and profile, however, it has been noted that the common banker’s salary in India is around INR 9.61 lakh per year. This range can vary from INR 2.46 lakh to INR 70 lakh per year, along with bonuses and incentives. These professionals are characterized as mergers, capital marketers, and sales representatives, and they base their work on the targets and needs of their clients’ budgets.
To manage a company’s money, they can work in the banking industry or as a personal consultant. Marketing and communication specialists, business analysts, relationship managers, and economic research analysts are other job positions that you can choose from in the investment banking industry.Â
Also Read About:- Hotel Management Salary in India | Product Manager Salary in India
Investment Banker Salary in India Job Role-Wise
The table shows the salary of investment bankers in India, according to their job role.
| Job Role | Average Salary Offered (Per Annum) |
|---|---|
| Investment Banking Analyst | INR 5 LPA |
| Business Analyst | INR 6 LPA |
| Investment Banking Associate | INR 7 LPA |
| Finance Manager | INR 10 LPA |
| Finance Director | INR 36 LPA |
Experience-Wise Investment Banker Salary in India
The salary for investment bankers in India, according to their experience, is given below.
| Name of the Bank | Work Experience | Average Annual Salary Package |
|---|---|---|
| ICICI Bank | 0-5 Years | INR 6 LPA |
| Axis Bank | 0-3 Years | INR 5.5 LPA |
| Kotak Mahindra Bank | 0-2 Years | INR 2.6 LPA |
| Induslnd Bank | 0-5 Years | INR 5.2 LPA |
| Yes Bank | 1-9 Years | INR 18.5 LPA |
| Federal Bank Ltd | 0-4 Years | INR 4.5 LPA |
| IDFC First Bank Ltd | 0-2 Years | INR 3 LPA |
| Goldman Sachs | 1-10 Years | INR 30 LPA |
| J P Morgan | 0-9 Years | INR 20 LPA |
Investment Banker Salary: Location Wise
The position of an Investment Banker is important to run the cash flow in Finance, Banking, or different sectors that are associated with Investment. However, the salary packages of an investment banker can vary from one place to another. Check out the average salaries being offered to investment bankers in some of the well-established towns of India.
- Mumbai: INR 17.7 LPA
- New Delhi: INR 6.8 LPA
- Bengaluru: INR 12 LPA
- Chennai: INR 4.3 LPA
- Kolkata: INR 19.12 LPA
- Hyderabad: INR 7.6 LPA
- Ahmedabad: INR 9.2 LPA
- Jaipur: INR 7 LPA
- Surat: INR 3.6 LPA
- Pune: INR 6.5 LPA
Factors That Impact the Salary of Investment Bankers in India
Investment bankers are responsible for boosting capital and supplying a range of economic services to their clients. Salary is an essential component whilst thinking about a career as an investment banker in India. The salary you could count on depends on several factors, including location, experience, networking skills, qualifications, industry developments and the job role you choose.
- Location- Location is one of the most important factors in the subject of figuring out the salary of an investment banker in India. Those who work in towns consisting of Mumbai or New Delhi may earn more than people who are based in smaller towns and cities. The cost of living is also higher in bigger towns which means higher salaries as compared to smaller cities or towns.
- Experience – Experience is also a key aspect that influences salary. Investment bankers with more experience can get higher salaries than individuals who are simply starting.
- Networking skills- Networking skills are important to determine the salary of an investment banker in India. Building robust relationships with clients and industry contacts can result in profitable opportunities and better salary packages. Successful networking can also open doors for promotions or bigger initiatives which may also lead to even extra economic rewards in your career.
- Qualification: Your qualifications are one of the most critical elements in the purpose of determining the salary of an investment banker in India. A higher level of training and certifications will usually come with better pay. Additionally, experience in the enterprise is also key to salary willpower.
- Industry Trends: Industry developments also play a role in determining an investment banker’s salary in India. If there’s high demand for a particular type of finance or banking service, then there may be more opportunities for higher salaries due to expanded competition for top expertise.
- Job role: The job role that you maintain can also have an effect on your salary as an investment banker in India. Senior-level positions like managing director or govt vice chairman can often come with a larger salary package than entry-level positions.
- Bonus Structure: Investment banks could have the best bonus structures based on the time you are working with the business company. Big bonuses are associated with large firms and longer time of employment, so keep this thing in mind when negotiating your salary.
- Work Hours: The hours that you work as an investment banker in India can also affect your salary package because many firms offer extra time to pay for employees for overtime. Depending on the needs of the job, additional working hours may be essential to meet client needs that may bring about better salary over time.
Investment Banker Jobs roles and responsibilities
The number one job of an Investment Banker is supporting clients on economic issues with capital growth, mergers and acquisitions, market evaluation, and managing financial transactions. Below are the job roles and responsibilities of an investment banker:
- Provide financial advisory services: Assisting clients on financial issues such as capital growth, mergers and acquisitions, and market analysis.
- Capital raising: Assisting the company in raising capital with methods consisting of preliminary public services (IPOs), secondary services, debt issuances, and personal placements.
- Mergers and acquisitions (M&A): Advising clients over merger and acquisition possibilities.
- Financial models and valuation: Building financial models and dealing with valuation exams to evaluate Investment opportunities.
- Market research and analysis: Complete market studies and analyze competitors’ strategies. Research on market conditions and modern-day market eventualities.
- Client dating management: Developing authentic and strong relations with customers, information their economic needs and imparting personalized solutions according to their needs.
- Risk evaluation and management: Analyzing the risk in a transaction and coping with strategies to reduce the risk.
- Deal negotiation and structuring: Negotiating the terms and conditions of financial transactions, and structuring deals to get good results for clients and following the guidelines of the authority
- Industry information: Having in depth knowledge and basic information of industries to help customers with valuable recommendation and growth
- Team collaboration: Work properly with colleagues, which include analysts, associates, and senior bankers, to coordinate and execute economic transactions efficiently.
- Client shows: Prepare and deliver shows to clients, stakeholders, and potential investors, effectively speaking economic analysis, suggestions, and transaction proposals.
Skills Required for An Investment Banker
Along with educational qualifications, an investment banker should have in-depth knowledge of financial control, economic planning, effective strategization, and many others. Certain skills are important to succeed in a career in investment banking and might assist in an excellent salary package deal from the initial years of career growth itself. Some of the top skills that can be required to excel in the investment banking field consist of:
- Investment Management
- Banking
- Financial Analysis
- Financial Modeling
- Communication and Persuasion Skills
- Microsoft Excel
- Strategic Planning Skills
- Analytical and Critical Aptitude
Investment Banking Companies
The top recruiters of Investment Banking are banks, consultancy companies, authorities in finance sectors, and different awesome agencies searching for an accountant. The top headhunters for Investment Bankers in India are
- Axis Bank
- Goldman Sachs
- Ambit Corporate Finance
- A.K.Capital Services
- Birla Capital and Financial Services
- Canara Bank
- Central Bank of India
- HDFC Banks
- ICICI Securities Limited
- Indian Overseas Bank
- JP Morgan India Private Limited
- Union Bank of India
- State Bank of India
- Karvy Investor Services Limited
- Citigroup
- Deutsche Bank
- Credit Suisse
- Barclays Capital
- UBS
- Wells Fargo
- HSBC Holdings
- Accenture
Future of Investment Bankers in India
The improvement in India’s economic condition indicates that the investment banking area is in all demand to make it bigger in the future. Digitalization, combined with emerging technologies, can be the golden chance for the future of investment banking in India. Investment banking is expected to grow and become the biggest sector of the banking enterprise in the future.
Conclusion
Investment Banking has had consistent growth in India during the last few years, and this is the reason why the salary of an investment banker in India is on the rise. As the country keeps exploring new, revolutionary financial opportunities, investment banking specialists have made more efforts towards financial improvement.
Salary of investment bankers in India is competitive and may start at around ₹5 lakh per annum. Experienced bankers may gain from salary packages ranging up to ₹50 lakh or more per annum, depending on their qualifications, knowledge, and experience. So, if you’re thinking about pursuing a career as an Investment Banker in India, you should know about its salary packages, skills, career growth, etc.