Investment banking is a financial service for organizations or the government where complex financial transactions are involved. Investment banks are different from regular commercial banks. They are involved in mergers and acquisitions, trading of derivatives, and equity securities or research. They provide advice to their clients for stocks, mergers, acquisitions, or sales. Investment bankers are financial experts dealing with these complex financial transactions on a day-to-day basis. They work as financial advisors to private firms as well as the government. Let's explore the salary of an investment banker in India.
What Is The Average Salary Of An Investment Banker?
As with every job, there is no fixed salary for investment bankers but a salary range. The average annual salary of an investment banker in India is estimated in the range of Rs 7 lakh - Rs 20 lakh per annum (approx). Several factors such as role, company size, location, and experience determine the salary range. Let's start from the beginner or entry-level roles:
- Investment Banking Analyst: They provide support to their associates by providing financial analysis, conducting research, and creating presentations. Analysts can earn in the range of Rs 6 lakh - Rs 17 lakh per annum.
- Investment Banking Associate: After 2 - 5 years of experience in the industry, analysts are eligible to become associates. Associates are in charge of client meetings, valuation, legal compliance, networking, and ensuring that the analysts perform their job well. Associates can earn in the range of Rs 5 lakh - Rs 16 lakh per annum.
- Vice-President: After working for an organization for around 5 - 10 years as an Associate, you can be eligible to become the Vice-President of the company. The salary range can be around Rs 40 lakh - Rs 70 lakh per annum.
- Managing Director: As the Managing Director of the organization, you might earn around Rs 55 lakh - Rs 1.5 crore per annum. Companies might have their eligibility criteria, but generally after working for the firm for around 10 years, you can be eligible to become the Managing Director.
Apart from the above-mentioned base salary, investment bankers usually receive a bonus on the amount of profit they generate. Bonus percentage is also dependent on various factors such as experience or company rules.
Factors Affecting The Salary Of An Investment Banker
The salary of an investment banker can vary depending on several factors:
- Educational Qualifications: An investment banker’s salary depends on whether you have a Bachelor’s degree or Master’s degree in Investment Banking. Chartered Financial Analyst (CFA) or Financial Risk Manager (FRM) certifications can help you get a high salary and improve your skills.
Experience: Having good work experience can help you get a high salary in your career. It's the same in the investment banking industry too. This is a fast-paced industry dealing with complex financial transactions, so developing skills is very important to survive here.
- Company Size: Large multinational banks like JP Morgan Chase, Goldman Sachs, IBM, or Morgan Stanley offer a high salary to their employees compared to domestic investment banks or boutique investment firms that offer a low salary range to their employees.
- Location: The location or region of the job can also greatly affect the salary of an investment banker. Metro cities like Delhi, Mumbai, etc., have a high salary range as the cost of living is high in these cities and there is a high demand or competition for jobs. On the contrary, small urban cities or towns might have a lower salary range due to lower cost of living and lesser competition.
How To Become An Investment Banker?
If you’re thinking of becoming an investment banker, you need to have certain qualifications and skills:
- Educational Qualifications: To start your journey in investment banking, you need to have a Bachelor's degree in Finance, Economics, Accounting, Business, or any similar discipline. You can also earn an MBA or Master's degree in the above-mentioned subjects. Additional certifications such as CFA or FRM can also enhance your skills and help you progress in your career. Amity University Online offers various courses that can help you start your career. Listed below are some of the top courses that the university offers:
- MBA in Banking and Finance
- MBA in Finance
- B.Sc. (Hons.) Accounting and Finance
- Master of Commerce (Financial Management)
- Skills: Every job has a certain skill set required for growth in the field. You require strong analytical skills to succeed as an investment banker. Other key skills include:
- Analysis of financial data and investment opportunities
- Assessment of risks associated with a deal
- Good understanding of financial transactions and market trends
- Strong communication skills to discuss complex financial data and simplify it for clients
- Attention to detail as minor mistakes can have big financial implications
- Good time management skills to thrive in a fast-paced industry
- Computer proficiency in the use of Excel and other related software
- Leadership qualities and the ability to work as a team
Best Investment Banks In India
Investment banking is a reputed job and there are several investment banks to choose from to start your career. Let's have a look at some of the best investment banks in India:
- Goldman Sachs
- JP Morgan Chase
- Morgan Stanley
- Barclays
- DBS
- HSBC
- Citigroup
- Evercore
- Bank of America
- Deutsche Bank
If you feel inclined to pursue a career in investment banking, start with getting a degree in Finance, Business, Accounting, or any similar domain. Check out Amity University Online courses that can help you take the first step to a lucrative career in the industry. You can start with undergraduate courses after completing 10+2. If you have completed your undergraduate course in any other domain, you still have a chance to get into this field by completing a postgraduate course for eligibility in investment banking.
