How to Become an Investment Banker in India: Career Guide with all the Necessary Information

Investment Banker in India Overview

Investment bankers are primarily responsible for raising funds for corporations, governments, and other financial institutions. Students can also pursue an MBA in Finance or a Chartered Financial Analyst certification to work as an investment banker. Investment bankers will be Chartered Accountants or students completing CA courses. As an investment banker with over 22 years of expertise, one may make up to INR 30 LPA. A career as an investment banker provides rapid advancement and significant compensation increases. Investment bankers earn an average income of INR 7.50 - 11 LPA. Students who have completed an MBA finance course are more likely to work in the IB industry.

Who is an Investment Banker?

A highly skilled individual who provides a variety of financial services to businesses, governments, and investors is known as an investment banker. They assist businesses in obtaining business loans; issuing stocks and bonds; setting security prices; raising stock capital; allocating resources; negotiating mergers; and managing investments. They serve as the intermediary between private or public firms and investors. They would provide financial advice and guidance on the types of securities to issue, such as stocks and bonds, when and how to issue them, and what price to establish for each instrument.

How to become an Investment Banker in India Highlights

The following table details about the investment bankers- 

What is Investment Banking?

In general, an investment bank is a private firm that provides financial and other services to corporations, people, and governments. It offers services such as obtaining financial resources through underwriting and acting as the client's agent in the issue of securities. It may also help corporations with mergers and acquisitions (M&A) and other auxiliary sectors like derivatives and equities securities trading, market making, and FICC services. An investment bank differs from a commercial or retail bank in that it does not take deposits. 

Investment Banking Importance in India

Many young millennials are lured to this line of work because of its status and income possibilities, but this should not be their primary motivator. People who work in investment banking typically need to be practical and think beyond the box in order to be innovative. The following are some actual reasons why investment banking may be a smart career choice-

1. One is curious about the abilities they will acquire as an investment banking analyst, such as Excel and financial modeling.
2. One is interested in learning more about high-profile transactions, financial markets, and how businesses make financial decisions.
3. One is thrive in a fast-paced, long-hours setting.

How to become an Investment Banker in India: Eligibility Criteria

The following are the eligibility criteria for investment banker in India- 

1. Candidates must have a Bachelor's degree in Finance, Accounting, Economics, or Mathematics. 
2. Students with degrees in Computer Science, Liberal Arts, or Physics are also eligible for investment banking. 
3. They should have completed the Master of Business Administration (MBA) in Finance and the Chartered Financial Analyst (CFA) program to be considered for high-level roles.
4. A law degree or a master's degree in financial mathematics is also desirable for a job in investment banking. 
5. Candidates' eligibility for investment banking is also determined by their grades in their Bachelor's or Master's programs. 
6. They must have received at least 55% aggregate marks in the qualifying examination.

Is it difficult to work as an Investment Banker in India?

Because of the intense and demanding nature of the job, becoming an investment banker can be difficult. Investment bankers frequently work more than 80 hours a week, must adhere to stringent rules, and deal with high-pressure situations. Accounting, economics, finance, mathematics, statistics, data analytics, and banking technology are all required. In order to connect and create relationships with prominent and incredibly affluent individuals, they must also have great communication skills and a confident, outgoing attitude.

Duration to become an Investment Banker in India

It might take 7 years or more to become an investment banker. After completing your 10+2 test, it usually takes 3 or 4 years to get your bachelor's degree. After that, you can pursue a 2-year master's degree program. It will take you another 3 to 6 years to complete a doctoral degree. Furthermore, earning credentials might take anything from 6 months to 4 years.

Investment Banker Role in India

Some of the primary tasks of an Investment Banker in India are given below-

1. Investment bankers assist organizations, firms, and other entities in raising funds for a variety of purposes such as development and improvement.
2. Investment bankers are also in charge of developing an organization's first public offering (IPO).
3. Investment bankers are also in charge of bond offers, merger negotiations, and even bond private placements.

How to Become an Investment Banker After 12th in India?

The purpose of investment banking is to act as a middleman between a firm and investors. They aid in the capitalization of businesses, governments, and other institutions. The following five steps are discussed below-

Step 1: Pass the class 12th board exams-

Candidates for the position of investment banker must have completed their upper secondary education (10+2) with a minimum aggregate score of 50% or equivalent CGPA from a recognized board. Candidates for the 10+2 board examinations can select from the arts, commerce, or science courses. However, in the commerce stream, studying mathematics, accounting, economics, business, and computer technology may be more advantageous.

Step 2: Earn a bachelor's degree in a suitable subject-

An entry-level position with an investment bank requires a 3 or 4-year bachelor's degree. Bachelor of Commerce (B.Com), Bachelor of Arts (B.A.) in finance, B.A. Economics and Bachelor of Business Administration (BBA) Finance are among the best alternatives for a career as an Investment Banker. 

Step 3: Earn a Master's degree-

A two-year Master of Business Administration (MBA) in financial management is a sought-after postgraduate degree for prospective investment bankers. Candidates seeking to become investment bankers can also pursue a Master of Science (MS) in finance. The National Stock Exchange (NSE) Academy provides 6 - 9-month postgraduate programs in investment banking and capital markets, banking and financial planning, business analytics, and management accounting.

Step 4: Obtain Certification-

A professional certificate such as the Chartered Financial Analyst (CFA) can assist applicants to enhance their careers as investment bankers. The CFA program provides extensive and practical financial and investing instruction. Candidates may apply for this program after earning their bachelor's degree. The course might last anywhere from one to four years.

Step 5: Look for Internships in Investment Banking-

Internships in investment banking may be located on job boards like Indeed and bank websites, as well as through campus placements, networking, and HR consultants. Internships in investment banks might last anywhere from 2 months to 2 years. In addition to financial training, candidates may learn to enhance their communication, presentation, and negotiating skills. Based on how well they do throughout their internship, they may be offered a permanent position as an investment banker.

Can a Chartered Accountant work as an Investment Banker in India?

Investment banking is a vocation that necessitates a thorough understanding of financial ideas and a command of statistics and spreadsheets. It necessitates extensive financial expertise. And the Chartered Accountancy course curriculum includes comprehensive coverage of finance. CA Finals consists of eight disciplines, one of which is finance: Strategic Financial Management.

This signifies that a CA has acquired financial understanding. The course prepares CAs for an Investment Banker role by familiarising them with financial ideas and theories. To train specifically in finance, one will need to supplement their Chartered Accountancy degree with a CFA, MBA with a finance focus, or an FRM degree. Having any of these degrees in addition to a CA degree puts one ahead of the competition. CA pay in Investment Banking in India is significantly more than that of an investment banker with another degree.

Read more about the CA Salary. 

Investment Banker Process and Education in India

The following are the stages and training requirements to pursue a career in investment banking-

1. Investment bankers receive extensive training from their firms. 
2. This training can span several weeks and teaches new analysts about accounting concepts, markets, risk, financial statement interpretation, and financial modeling. 
3. They also learn about bargaining, presentation, and communication skills.
4. In comparison to higher positions in the hierarchy, becoming an analyst is easy. 
5. After earning your bachelor's degree, you can pursue a career as an analyst. 
6. However, it may require three or more years of professional experience and a higher level degree to advance to positions such as associate.
7. Finally, the function of the hustle and drive to become an Investment Banker is discussed. 
8. Visit prominent investment firms such as Goldman Sachs and JP Morgan to learn more about the requirements and training procedure. 
9. These organizations provide information on the many programs they provide for undergraduates, graduates, and experienced professionals.

Read more about Father of Accounting.

Investment Banker Courses in India

The courses available to students aspiring to be investment bankers are listed below. Some of these courses are also available to students via distance learning-

Bachelor of Commerce (B.Com) Hons.

BCom Hons is a three-year undergraduate study in commerce that covers disciplines such as accounting, investment, taxation, economics, financial management, and so on. This course is intended to provide qualified students with expertise in a wide variety of skills necessary in the financial and investment sectors. Students who complete the BBA program and the subsequent PG course will become investment bankers.

Admission Procedure: BCom Hons admissions are based on a merit-based admissions procedure, followed by a personal interview round. Some colleges hold their own BCom Hons admission exams. 

BBA in Finance

BBA Finance is a three-year undergraduate program that aims to provide students with a practical and theoretical understanding of many financial components, such as investing, insurance, and so on. This program prepares graduates for entry-level positions in finance and business. After finishing the BBA finance and PG programs, students will become investment bankers.

Admission Procedure: If the rules are followed, admission to the BBA Finance program is a pretty straightforward procedure. The following are some of the entrances tests which are listed below-

MBA in Financial Management

MBA Financial Management is a two-year postgraduate program designed to prepare students for management and related jobs in the Investment and Finance business. This course teaches students about investment, administration, budgeting, investment results, and financial asset monitoring. Entrance tests are used to determine admission to the MBA Financial Management program. However, a few universities also accept applicants based on their undergraduate grades. The following is the application process for the same-

1. Candidates must apply online for admission to the institutions or universities in which they are interested.
2. Candidates must score higher than the minimum qualifying percentile specified by the particular institution or university in order to be considered for future rounds of admission.
3. Following the written exam, special group discussions (GD) and personal interviews are held to create the final merit list of selected applicants.
4. The final assignment of seats to students occurs following the admission procedure, and the applicant is needed to submit the course fee and register for the appropriate academic year.

Read more about the Upcoming Bank Exams 2022.

After Investment Banking Courses in India

The choices available to applicants after becoming an investment banker are shown below-

1. Students can pursue a Ph.D. or a Masters's degree after becoming Investment Bankers. 
2. These courses will give students with in-depth understanding. 
3. Ph.D. degrees will give a doctoral degree, and they will be able to post their thesis for future enthusiasts interested in becoming Investment Bankers.
4. Investment bankers might begin their professional careers by assisting organizations in making decisions about asset investments. 
5. They will receive an excellent wage package as they develop experience and knowledge. 
6. They can also advance to the highest management positions in the organization.

Top 10 Colleges for an Investment Banking in India

There are several courses available which help in the advancement of the profession as an Investment Banker. Management courses are provided at a plethora of universities throughout India. The following is a list of the best colleges in India-

1. Bharathiar University, Coimbatore
2. Indian College of Business, Hyderabad
3. Indian Institute of Management, Ahmedabad
4. Indian Institute of Management, Bangalore
5. Indian Institute of Management, Kozhikode
6. Keshav Mahavidyalaya, Delhi University
7. Lala Lajpat Rai College of Communication & Economics, Mumbai
8. MICA, Ahmedabad
9. School of Management Studies, Delhi
10. Shaheed Sukhdev College of Business Studies, Delhi University

Investment Banking Career in India

An investment banker's career progresses in a predictable manner. The following are the positions in the investment banking hierarchy-

1. Analysts- People who work as analysts shortly after graduating. They are at the bottom of the hierarchy and do the most labor, including presentations, analysis, and administration.
2. After a minimum of three years, individuals with exceptional achievement are promoted to Investment Banker Associates. The function of an associate is the same as that of an analyst. The only extra responsibilities are that he acts as a liaison between junior and senior bankers and, in rare situations, interacts directly with customers.
3. Vice President- A VP oversees a team of colleagues to put together daily work and spends their days continually engaging with clients. They develop presentations and legal agreements, as well as provide memorandums, proposals, and engagement letter term sheets, and they cultivate client connections.
4. The highest level in Investment Banking is Senior Vice President / Executive Director. A senior VP's job is substantially different from that of an analyst, associate, or VP, mostly because the emphasis changes to new business prospecting.
5. Managing Director- Becoming a managing director takes a long time and a lot of luck. They have the most power and are in charge of the bank's profitability. In rare circumstances, he participates actively in the transaction, but he appoints an efficient VP and senior VP to carry out their daily work.

Investment Banker Salary in India and Job Descriptions

High-paying employment is one of the aspects that contribute to an investment banker's becoming one of the most sought-after occupations. The following is a baseline investment banker's pay in India and internationally for typical job profiles-

Read more about the Investment Banker Salary in India.

Benefits of Working as an Investment Banker in India

Investment banking is regarded to be one of the most lucrative jobs in the world. Some of the benefits of working as an investment banker are as follows-

1. Higher Education: While working as a professional Investment Banker, they can pursue Masters's or Ph.D. programs in a relevant discipline. Candidates should be able to undertake research in investing and related topics. They can also publish their thesis for those aspiring to be Investment Bankers.
2. Investment banking is a unique sector of business management in which people may work according to their abilities and expertise. They also get a lot of experience because it's a constant learning process where you learn a new approach and method every time.
3. Job Security: Professional Investment Bankers may work from anywhere in the globe because of the skills they learn through experience. If they have a great skill set in the relevant sector, they can easily acquire a job wherever in the globe.
4. Positive Career Impact: Investment bankers assist financial markets and the economy by connecting sellers and investors. As a result, their efforts improve market development and have an influence on corporate growth, which benefits the economy.
5. Salary: Depending on experience, an investment banker may earn between INR 5 and 8 LPA. They can create their own organization and make executive choices for the company as they develop experience and knowledge. They can also operate as a freelance Investment Banker for a variety of companies and organizations.

Investment Banker Scope in India

Investment banking is becoming a viable employment option for India's active and motivated young. The following are some of the reasons why young people in India aspire to pursue this career-

1. It is exciting and satisfying work with several financial and personal and professional benefits. 
2. This job demands someone who is up to speed on the market and has a lot of room to learn. 
3. An Investment Banker's pay in India is relatively high.
4. Another important reason why this is a popular career path in finance is that it provides doors to larger occupations such as wealth management, management, entrepreneurship, and venture capital.
5. As India's economy grows, employment chances in investment banking are expanding, with new job opportunities coming up.
6. In the beginning, a pay of 6-8 lakhs per year is granted, which gradually increases as one works more and develops more expertise.
7. Because of the increased rate of FDI in India, it is an excellent career opportunity.
8. Banks now demand a qualified investment banker who can contribute to the organization's growth as a result of the settlement in investment banking and its financial services.
9. Because various factors may influence market movements, there will always be a need for an Investment Banker with strong market understanding and financial acumen to manage the market.

List of Top Banks in India 

The following AIBI-registered organizations have already established themselves in the Indian investment banking business-

1. Axis Bank Ltd.
2. Barclays Bank PLC
3. BNP Paribas
4. Central Bank of India
5. Credit Suisse Securities (India) Private Ltd.
6. Deutsche Equities India Private Ltd.
7. Edelweiss Financial Services Ltd.
8. HDFC Bank Ltd.
9. HSBC Securities & Capital Markets (India) Private Ltd.
10. ICICI Securities Ltd.
11. IDBI Capital Market Services Ltd.
12. JP Morgan India Private Ltd.
13. Morgan Stanley India Co. Private Ltd.
14. Religare Capital Markets Ltd.
15. SBI Capital Markets Ltd.
16. SMC Capitals Ltd.

Investment Banker Skills

An excellent investment banking aspirant should have a strong analytical mind as well as the capacity to function as part of a team. They should also be able to think critically and be eager to learn new things. Some of the skills required to become an investment banker in India are listed below-

1. Analytical Skills
2. Arranging Financing
3. Equity Financing
4. Negotiating Mergers and Acquisitions
5. Quantitative Skills
6. Structuring & Closing Principles 
7. Team Bonding
8. Underwriting Deals

Also read more about the Hard Work vs Smart Work. 

Top Recruiters for Investment Banking

The following are some of the recruiters for investment banking in India-

1. Goldman Sachs
2. Morgan Stanley
3. Citigroup Global Markets India Private Limited
4. Kotak Mahindra
5. Axis Capital
6. ICICI Securities Limited
7. JM Financial Limited
8. HDFC
9. SBI Capital Markets Limited