Despite the vulnerable market conditions, the global investment banking market discerned a promising start to its work processes, perceiving an unexpected growth from $153.49 billion in 2022 to $166.62 billion in 2023 at a CAGR! This implies an optimistic future for aspiring investment bankers aiming to join this lucrative industry.
Investment banking obtains the status of being one of the most coveted job profiles. Thanks to its dynamic high-paying nature, a major part of the finance workforce is driven to pursue the role. Most of the employees and individuals working in this sector earn the same as the top 1% of the population in India. A novice investment banker can take home a salary of around 10 LPA. However, with experience and rising the industry ladder, one can get a package of 90 LPA!
Wondering how much investment bankers earn in India?
Let’s dig deeper into the role of an investment banker, ranging from in-demand skills to different designations and their salaries!
Understanding Investment Banking
The Investment banking industry is concentrated on funding institutions, clients, and companies while extending financial consultancy to make well-informed decisions. Investment bankers are responsible for making deals with investors using their client’s equity while managing complicated business procedures like acquisitions and mergers. As a result, the investment banking industry helps companies and institutions grow.
As the demand for expert investment bankers anticipates a 10% growth by 2031, knowing all about the industry, including the responsibilities and salary of investment bankers in India across various roles, is significant.
Responsibilities of an Investment Banker
The lucrative nature of investment banking salary in India and across the globe is because investment bankers are experts at conducting thorough research and understanding market trends and patterns to help clients. Let’s decode their core responsibilities!
- Making investment decisions:
Many companies and clients rely on investment bankers to underwrite services when issuing new stocks, working as an intermediary among clients and their investors during initial public offerings or IPO. Crucial decisions such as debt restructuring is also conducted under the supervision of investment bankers at times of financial distress.
- Supervising staff:
Investment bankers also supervise internal staff to ensure that resources are well-spent. Investment bankers must keep track of the investment department’s funding, progress, and stats. Minimizing losses is very important for corporates to grow.
- Interacting with clients and maintaining professional relationships:
Investment bankers must use phone calls and messages to reach the target audience. They also supervise the business financial collection sector to make sure that the bills owed to the company are billed and received appropriately.
- Tax planning:
Apart from raising client funds, investment bankers find ways to maximize tax returns and minimize tax cuts for companies and clients. They also help individuals to get the maximum tax returns.
Skills Required to Become an Investment Banker
The salary of an investment banker in India might seem lucrative and rewarding to a fresher. But the job comes with a cost. It can be demanding and stressful at times. As a result, this industry prefers candidates with specific skills and high tenacity.
We will review the details of the technical and soft skills you need to be an expert investment banker.
Technical Skills
Investment banking involves a lot of technical work, from doing calculations to deconstructing myriad financial information using data analysis tools.
- Investment bankers create financial plans and models after understanding a company’s financial position. They also calculate the valuation amount and forecast based on probable situations.
- Investment bankers create data visualizations for investment plans or financial operations.
- They also check real-time market data to be on top of trends and shifts.
These technical skills can help you get the best jobs with high-paying investment banker salary in India.
Soft Skills
Investment bankers are required to put in long periods of work time. Therefore, you need several soft skills to excel at your job.
- Analytical skills
Freshers in this industry mainly analyze financial information and solve problems. Therefore, analytical skills are a must.
- Negotiating Skills
Investment bankers must adequately identify and convey their needs to reach a mutual agreement while making deals.
Investment Banking: Job Roles and Salaries in India
Now that we’ve reviewed an investment banker’s role and what skills you can add to your CV, let us understand the investment banking structure. An investment bank has several positions, such as investment analysts, vice presidents, and managing directors. While analysts and associates perform the daily chores of the job, vice presidents or managing directors focus on client management.
- Analyst or Senior Analyst
Most financial graduates join the investment banking industry as analysts. Their job involves a lot of technical work, which includes creating financial models. They also calculate valuations and other financial calculations like CAGR (Compound annual growth rate) and Price-to-Earning ratio.
The average investment bankers salary for a fresher analyst in India is 8 LPA.
- Associate or Senior Associate
The main task of associates is to supervise the analysts and analyze numbers. However, they must also convey instructions between senior officials and analysts. Most of the associates come from the top MBA colleges. However, some analysts also get promoted to associates after a few years.
The average pay for Investment banker associates in India is INR 10 LPA.
- Vice President
The role of vice president is one of the senior bankers in investment banking. Vice Presidents have two primary responsibilities. The first is managing client relationships, and the second is completing pitch records while supervising the workforce.
The average salary for vice presidents in India is INR 56 LPA.
- Senior Vice president
The senior vice president is the highest position that most investment bankers reach in their lifetime. Most of the senior vice presidents deal with prospects of bringing new businesses.
The average salary for senior vice presidents is INR 60 LPA.
- Managing Director
We’ve reached the top of the pyramid, the managing director. These professionals have the ultimate authority when it comes to making decisions for more profits. They must have a strong grasp of the current political and economic trends/activities.
The average pay for managing directors in India is INR 120 LPA.
Factors Affecting Investment Banking Salaries
The salary of investment bankers in India depends on diverse factors. Let’s discover some of them to understand how salary figures are measured for investment banking roles.
- Experience
With the growing number of years you contribute to any enterprise, your industry value tends to increase with respect to work experience and skill expertise.
- Salary for fresher investment bankers: Investment banking starting salary for most investment bankers is INR 5-7 LPA in the first year of work.
- Salary for mid-level investment bankers: Investment bankers can expect to earn around 8 LPA after completing their first year at work.
- Salary for senior investment bankers: Senior investment bankers are professionals who have a work experience of more than ten years. These professionals can get a salary package of INR 30 to 50 LPA.
- Location
Geographic location can be another factor affecting an investment banker’s salary. Since salary figures oscillate from region to region, this table will help you understand how location affects the salary.
| Cities | Average Salary (INR) |
| Kolkata | 20 LPA |
| Mumbai | 17.4 LPA |
| Bangalore | 9.6 LPA |
| New Delhi | 8.5 LPA |
| Lucknow | 7.5 LPA |
| Pune | 7 LPA |
| Hyderabad | 5 LPA |
| Chennai | 3 LPA |
- Company
Globally and domestically recognized financial institutions can offer you a high salary, while small companies might not be able to provide the same. Let’s review the average salaries offered by the best financial institutions in India.
| Companies | Average salary |
| JP Morgan Chase | 51 LPA |
| Morgan Stanley | 18 LPA |
| Goldman Sachs | 16- 43 LPA |
| HSBC | 10 LPA |
| Wipro | 6.9 LPA |
| Accenture | 9.5 LPA |
| Axis bank | 12 LPA |
| State Bank of India | 25 LPA |
| Deutsche Bank | 16 LPA |
Conclusion
An efficient investment banker with reliable skills and extensive work experience has the ability to protect their organization from vulnerable financial conditions. All they need is the right set of skills and a strong candidature that speaks for their ability. Considering the dynamic future that awaits investment bankers in the upcoming years, finance aspirants must start preparing early.
A Master of Business Administration from Golden Gate University can be that much-needed jump-start for your career! With a specialization in finance, MBA graduates from GGU are ready to become industry leaders with enhanced skills, peer networking, and experience working on activity-based case-study frameworks.
FAQs
- What course should I take to become an investment banker?
The investment banking industry prefers experts with an MBA in finance background. Therefore, you can go for an online MBA program to embark on this road.
- What’s the highest salary that an investment banker can expect to earn?
The salary of an investment banker in India differs depending on certain factors, such as location and company. The highest-paid investment bankers can expect a salary of INR 1 Crore!
- What are the advantages of being an investment banker?
Investment bankers are exposed to global opportunities, helping them to attain powerful networks, high salaries, job security, and international work trips.
Source: https://www.thebusinessresearchcompany.com/report/investment-banking-global-market-report https://intellipaat.com/blog/investment-banker-salary-in-india/ https://www.bls.gov/ooh/sales/securities-commodities-and-financial-services-sales-agents.htm https://www.glassdoor.co.in/Salaries/investment-banking-analyst-salary-SRCH_KO0,26.htm https://www.glassdoor.co.in/Salaries/india-investment-banking-associate-salary-SRCH_IL.0,5_IN115_KO6,34.htm https://www.payscale.com/research/IN/Job=Investment_Banker/Salary/07b1c789/Mumbai
