As a separate segment in the banking industry, the roots of investment banking in India can be traced back to the 19th century. Foreign banks started establishing trading houses in the country to better manage merchant banking and investment activities. Even after independence, the industry was mostly dominated by non-Indian financial entities.
In 1970, SBI or State Bank of India then established the Bureau of Merchant Banking. ICICI Securities then became the first Indian entity that started offering merchant banking services. By 1980, there were already more than 30 merchant banks in the country.
Fast forward to the present, the rapid growth and expansion of financial institutions and commercial banks in India have made investment banking one of the most lucrative career choices.
But who is an investment banker? How do you become one? Take a look-
Who is an Investment Banker?
Investment bankers are finance professionals who help organizations, companies, and clients grow and manage their financial assets. They play a critical role in helping their employers or clients make decisions regarding their investments with the aim to boost the investment value.
They have an excellent understanding of financial securities and trading activities, based on which they are able to provide their valuable assistance. Moreover, investment bankers often function as brokers or mediators facilitating corporate transactions such as M&As.
What is the Average Salary of an Investment Banker in India?
As investment bankers are high in demand, not just in India but globally, the pay scale is highly lucrative, except for entry-level positions. Here is a brief overview of the pay scale-
- Entry-Level Positions- 3 lakhs to Rs. 5 lakhs per annum
- Experienced Professionals- 20 lakhs to Rs. 50 lakhs per annum
- Average Salary- 10 lakhs to Rs. 12 lakhs per annum
Who are the Top Employers?
One of the USPs of becoming an investment banker is the career opportunities in multiple industrial sectors. From sales, trading, private equity, banking, capital markets to M&As, one can choose any industry as per their expertise and interests.
Some of the top investment banker employers in India are-
- Goldman Sachs
- JP Morgan
- Kotak Group
- Axis Bank Ltd.
How Do You Become an Investment Banker in India?
It is not necessary for an individual to pick any particular stream or course to become an investment banker in India. But as the field has become highly competitive, employers prefer candidates who have completed a related professional program.
Here are the professional courses that you can consider if you aim to become an investment banker-
- BBA (Bachelor in Business Administration) in Finance
- BA (Bachelor of Arts) in Economics/Finance
- Com (Bachelor of Commerce) Hons.
- CFA (Chartered Financial Analyst)
- MBA (Master of Business Administration) in Banking and Finance
If you are already a working professional, NMIMS now also offers Distance Education MBA in Banking and Finance. As the institute already has several multinational corporations, companies, and start-ups as their hiring partners, completing this 2-year course from NMIMS can be an excellent choice to begin your career as an investment banker.
The Future of Investment Banking
From the current market value of $102.84 billion, the investment banking sector is expected to surpass $137.97 billion by 2025, growing at a CAGR of 5%. With corporates, start-ups, and even governments looking for expansion and raising capital, the role of investment bankers is only expected to expand in the future.
This can be the right time for students and experienced professionals to take the first step towards building a lucrative career in the investment banking industry.