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Investment Banking is one of the most prestigious and profitable career options in the finance and commerce industry. Investment Bankers are financial advisors of corporations and even of the government, and are hence high in demand. They are responsible to help their clients grow their capital and assets either by the issuance of stocks or through negotiations while buying a rival’s company. These financial advisors also help in arranging the sale of the company itself. Investment bankers also advise and provide consultancy to firms and corporates about stock investments and growing the existing capital.
Entry-level investment banking associates can easily earn lucrative packages for themselves, with salaries up to INR 7 LPA to INR 8 LPA or more frequently in their first year of professional endeavour itself. Experienced investment bankers who work their way up the professional ranks can easily earn up to INR 12 LPA - INR 30 LPA.
The demand for Investment bankers is very high in India and across the world. One of the reasons behind these lucrative compensation packages is that financial advisors provide certainty in investments and help in increasing the wealth of corporations. Their professional training and educational background helps them provide credibility, making their advice and consultations more reliable.
After the pandemic, although there have been numerous uncertainties in the stock market and investments, investment banking has remained as one of the fastest-growing sectors in India and in the rest of the world. The professionals who work in the investment banking sector are those who enjoy a hefty amount as a salary package, and hence there is a growing recognition of the study of investment banking as a professional course.
Who is an Investment Banker - what does an Investment Banker Do?
An Investment Banker is a medium between companies or investors who are willing to invest money but don’t know the technicalities and firms who are looking forward to raising funds. In other words, they serve as a conduit or a medium between investors seeking investment possibilities and organisations seeking funding.
An investment banker’s duties can be separated into two categories: assessing a company’s financial situation and achieving its financial objectives. Investment bankers are in charge of analysing a company’s financial situation and capital requirements in order to offer a viable plan for reaching those objectives.
Investment bankers’ major responsibilities include:
- Reviewing the organization’s goals and requirements using a retainer: Usually, an organisation supplies all of the essential financial information to the investment banker.
- Devising Strategies: including issuing and selling of stocks, selling bonds, taking on debt or a combination of these
- Raising capital gains by giving firms investment or financial advice: They provide professional advice to firms and corporations about which stocks to invest in, where to gain maximum profits from and so on.
- Preparing Models for Mergers and Acquisitions: they provide financial planning and advice to firms regarding mergers and acquisitions and how to handle such organizational change effectively.
Skills Important For An Investment Banker
Apart from educational qualifications, an investment banker must have in-depth knowledge of financial management, financial planning, effective strategization etc. Certain skills and competencies are important to succeed in a career in investment banking, and can help a professional in earning a good salary package from the initial years of career development itself.
Some of the top skills that are required to excel in the investment banking field include:
- Investment Management
- Banking
- Financial Analysis
- Financial Modelling
- Communication and Persuasion Skills
- Microsoft Excel
- Strategic Planning Skills
- Analytical and Critical Aptitude
Note: Certain popular skills and areas of expertise like financial analysis, modelling, investment knowledge, banking and accounting skills etc. are central to effectively developing a career in investment banking as they help the professional to stay relevant in their job and adapt to latest trends and developments quickly and efficiently.
Average Salary of an Investment Banker in India 2023
The average salary of an Investment Banker is around INR 8.8 LPA and it can extend up to Rs. 40 LPA as the professional gains experience in this field.
However, if a candidate is just starting their career in this field then they might easily earn around INR 4 LPA -INR 7 LPA. The exact salary package one can earn as an investment banker also depends upon the skills and expertise the fresher has gained over time.
The compensation provided to investment bankers in India has increased dramatically in recent years, as businesses are seeking professional assistance in raising financing and capital for their projects and carefully investing their assets to grow them further.
In this light, investment banking has become a very sought-after profession in the Indian financial industry as the country’s investor base grows. Investment banking activities in India have contributed significantly to the growth of companies, banks and firms in India over the past few years leading to it becoming a much coveted profession with great responsibilities and fair compensation.
Major Factors That Affect Investment Banker Salary In India
Albeit we mentioned the average salary of an investment banker in India but this is not a fixed salary that a financial advisor can earn. There are a plethora of factors that affect the salaries of investment bankers in India or outside India. You can check the below-mentioned factors to know what can affect your salary if you are looking forward to working in this domain:
1) Skills
Your skills and performance as an investment banker have a direct impact on how much money you can make in this industry. Developing major skills in you will not only help you in securing a high-paying job but will also enhance your market worth that can offer you job security and progression in your career.
Some of the major skills that you need to inculcate to perform impeccably in this industry are Financial Analysis, Financial Modelling, Mergers & Acquisitions, Financial Strategy Planning, Microsoft Excel etc. Some of the pertinent soft skills include those like communication skills, ability to work under pressure, critical and analytical ability, persuasion ability etc.
Having these in-demand skills can actually help you stay relevant and updated about the latest happenings in the industry. Specific abilities also tend to provide investment bankers with higher-than-average income. Microsoft Excel is the most valuable skill area in this regard, as investment bankers with this skill have been found to earn significantly higher salary CTCs than the average statistical figures point out.
2) Level of Experience
The level of experience within the same industry is a factor that directly impacts the salary package you can earn. Not only this, it also enables the professional to attain security in their current job and progress their career further. Gaining a good experience enhances your domains and depths of expertise and provides you with better salary packages in top companies and firms.
Understandably, beginners earn mediocre salaries as investment bankers while more experienced professionals can easily bag lucrative and massive pay packages. As per the data by Payscale, investment bankers at the entry level tend to earn 32% lower salary amounts than those in their mid careers.
3) Company/Firm
The company or firm you are working in plays the most important part in determining your paycheck or salary package. Companies in consultancies, investment firms, banking sectors etc. pay lucrative salary packages to students Some of the well-known employers or companies that hire investment bankers include Morgan Stanley, IBM, Goldman Sachs, JP Morgan and Chase etc.
4) Your Location
The location of the firm you work for can also affect how much you earn as an investment banker because in some cities, there is a higher demand for investment bankers than in others. Moreover, the cost of properties, estates, stocks etc. also vary as per location which can be another pertinent factor affecting the salaries and earning scope of investment bankers. Statistics indicate that Mumbai is one of the most prosperous cities for investment bankers to develop a career in.
Top Related Job Roles in Investment Banking
In addition to purely pursuing a career in investment banking, there are other related job domains which also require skills and competencies of investment banking and can provide a prosperous scope for career development to professionals.
A few of these job domains along with the average salaries they can earn per annum have been enlisted here:
|
Job Title |
Average Salary per annum |
|
Data Analyst |
INR 2.3 LPA - INR 10 LPA |
|
Operations Team Leader |
INR 2.7 LPA - INR 10 LPA |
|
Financial Analyst |
INR 2.3 LPA - INR 10 LPA |
|
Financial Business Analyst |
INR 3.1 LPA - INR 20 LPA |
|
Finance Manager |
INR 4 LPA - INR 20 LPA |
|
Financial Strategist |
INR 2.8 LPA - INR 8 LPA |
|
Financial Risk Analyst |
INR 2.5 LPA - INR 15 LPA |
Investment Banker Salary: Company Wise
Investment Bankers are currently in demand like never before and it is so because in the last few years, the growing uncertainty in investment has raised the need for financial and investment advice exponentially.
Investment banking has undoubtedly become one of the most profitable professions in India and the rest of the world in recent times.
However, the salaries of investment bankers differ depending on the companies/firms they are working with. As per recent reports, the employers that pay the highest packages to investment bankers are investment banks such as ICICI Securities, HDFC Bank, Goldman Sachs, Morgan Stanley, Axis Bank, and so forth.
Below we have provided facts about a few of the top companies that hire investment bankers along with the average salaries they provide to professionals. (Source: Ambition Box)
-
JP Morgan Chase
JP Morgan Chase & Co. is a multinational bank of America that deals with financial services. JP Morgan is one of the world’s largest banks based on market capitalization and total assets. Hence, it offers one of the highest salary packages to investment bankers. You can check the average salary given by JP Morgan Chase & Co. to investment bankers or financial advisors:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
JP Morgan Chase & Co. |
INR 27.9 LPA |
0-13 Years |
-
Morgan Stanley
Morgan Stanley is a multinational investment bank and financial services firm in the USA which is headquartered in New York City. Morgan Stanley has offices in more than 42 countries and its clients include institutions, corporates, governments, and even individuals. You can check the average salary offered by Morgan Stanley to investment bankers in India below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
Morgan Stanley |
INR 37.8 LPA |
0-3 Years |
-
ICICI Bank
ICICI is an Indian multinational bank and financial services company that has a wide network and numerous subsidiaries under it. The average salary offered by ICICI bank to investment bankers is very competitive and you can check the numbers below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
ICICI Bank |
INR 5.1 LPA |
0-3 Years |
-
Axis Bank
Axis Bank is an Indian banking and financial services company, formerly known as UTI Bank. It provides financial services to small, middle, and large scale companies and has more than 91,000 employees. The average salary offered by Axis Bank to investment bankers is listed below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
Axis Bank |
INR 16 LPA |
0-25 Years |
-
Kotak Mahindra
Kotak Mahindra is an Indian private sector bank and a financial services company. Kotak Mahindra is one of India’s largest banks in terms of assets and market capitalization. It has subsidiaries like Kotak Securities, Kotak Life Insurance, Kotak Securities, Kotak International Business etc. The average salary that Kotak Mahindra offers to investment bankers is mentioned below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
Kotak Mahindra Bank |
INR 8.4 LPA |
0-16 Years |
-
HDFC Bank
HDFC Bank Limited is India’s largest private sector bank in terms of assets and the world’s tenth-largest in terms of market capitalization. The average salary provided to investment bankers by HDFC Bank is mentioned below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
HDFC Bank |
INR 10.8 LPA |
2-18 Years |
-
Yes Bank
Yes Bank Limited is an Indian private sector bank that works with retail and banking and asset management services. Yes Bank accommodates more than 23,000 employees and is a significant contributor to the nation’s economy. The average salary provided by Yes Bank to investment bankers and financial advisors is mentioned in the table below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
Yes Bank |
INR 2.9 LPA |
0-3 Years |
-
Goldman Sachs
The Goldman Sachs Group is an American investment banking company that has headquarters in New York City. The company provides services like investment management, securities, asset management, prime brokerage, and securities. The average salary provided by Goldman Sachs to investment bankers is mentioned in the table below:
|
Name of the Bank |
Average Salary (INR) |
Work Experience |
|
Goldman Sachs |
INR 37.7 LPA |
4 Years |
-
Wipro
Wipro is an Indian MNC that was established in India in 1945 and is currently headquartered in Bengaluru. The firm deals with services like IT support, consultancy, business process services etc. The firm currently has subsidiaries and offers services in over 167 nations. The salary it offers to investment bankers has been mentioned below:
|
Name of the Firm |
Average Salary (INR) |
Work Experience |
|
Wipro |
INR 2.7 LPA |
0-1 Years |
-
McKinsey and Company
Founded in 1926, McKinsey and Company is a century-old American consultancy firm and one of the “Big Three” management consultancies of the globe. The major services of this firm include those like consultancy, market researches, analyses etc. Investment bankers can earn a magnanimously high salary at this firm, which has been mentioned below:
|
Name of the Firm |
Average Salary (INR) |
Work Experience |
|
McKinsey and Company |
INR 71.3 LPA |
0-17 Years |
Investment Banker Salary: Location Wise
The role of an Investment Banker is essential to run the money flow in Finance, Banking, or other sectors that is related to Investment. However, the salary packages of an investment banker can vary from one location to another, as well as based on the nation in which one is working.
Check out the average salaries being offered to investment bankers in a few of the well-developed cities of India (based on data by Glassdoor):
- 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
Investment Banker Salary: Experience Wise
Investment Banking is one of the most challenging professions in the finance industry and that’s why its salary skyrockets with time and experience. As you get more experience in this field, companies or banks will start recognizing your worth and provide you with fair compensation and career opportunities. Here we have shed light on how the salary CTC spikes with years of experience for an investment banker. (source: Payscale)
Investment Banker Fresher & Early Career Salaries
Freshers are those who have either less than a year of experience or no experience at all in the professional field. This usually includes fresh graduates who have just completed higher education in investment banking as well as those who are switching their careers to begin afresh in investment banking. Such professionals can easily earn around INR 6 LPA in reputed firms. Those who are in the early stages of their career, i.e. have around 1 to 4 years of professional experience, can earn nearly INR 8.9 LPA.
Investment Banker Mid-Level Salary
When the individual gets around 5-9 years of work experience in the investment banking field then they can claim a salary above INR 20 LPA quite conveniently.
Investment Banker Senior-Level Salary
A senior-level investment banker is someone who has between 10-20 years of professional experience in investment banking. Such bankers can earn up to INR 30 LPA. However, if an investment banker has more than 19 years of work experience, and is a highly experienced senior investment banker, then they can earn anywhere between INR 40 LPA to INR 45 LPA.
Investment Banker Salary In The Rest of The World
Similar to any professional profile, that of an investment banker also varies from one nation to another. So if you are working in a country other than India then your salary package is bound to vary significantly from India. The financial condition or the economy of the country plays a crucial role in the job demand for investment bankers and consequently, the salary packages investment bankers are likely to receive in the country. (source: Payscale)
- United States of America: $117,603 p.a
- United Kingdom: £60,641 p.a.
- Australia: AU$97,725 p.a.
- New Zealand: NZ$61,445 p.a.
- Switzerland: 98,264 Fr. p.a.
How To Become An Investment Banker? [Investment Banker Qualifications]
An investment banker is responsible for a wide range of activities pertaining to financial consulting, financial investments and handling other financial affairs of the company. As a result, businesses are constantly on the lookout for skilled and certified employees to fill this job position.
In India, there are a number of educational options that one can consider to kickstart their career in investment banking.
A common option is to go for a B.Com degree that enables the student to gain in-depth knowledge about domains related to commerce after class 12th. This course can be beneficial to provide the foundation of investment banking, although specific add-on courses for professional education may be needed to get placed as a professional investment banker.
Students can also take up a BBA or an MBA in Finance or an MBA in Investment Banking to work as a professional investment banker. One can even pursue dual specializations in MBA programs like MBA in Banking and Finance, MBA in Investment and Insurance, MBA in Banking and Accounting to acquire a wider avenue of skills and knowledge and get an edge over contemporaries in this industry.
If you are a student who is pursuing a regular degree course at the UG or PG levels, for instance a degree like B.Com/BBA/MBA, you can also take up additional certification courses or MOOCs in the online mode to build upon your existing skills in the professional domain and get a competitive advantage for jobs and career development.
Future of Investment Bankers in India
The current trend in India’s economic activities suggests that the investment banking sector is likely to expand magnanimously in the future. Digitalization, combined with emerging technologies, can prove to be the golden route for the future of investment banking in India. Investment banking is predicted to grow and emerge as one of the largest sectors of the banking industry in the future.
Here is the list of some topics related to career options for the future in India:
Conclusion
Through this blog, we have tried to provide detailed insights to you about the profession of investment banking as well as details about how an investment banker’s salary varies as per the location, experience, company, and skills of the professional. Investment banking is a field in commerce brimming with career opportunities provided the current dearth of professionals getting formal education in this specialisation. To ease the process of becoming a professional in investment banking, this blog has provided further information to students about the possible courses they can take up to practise investment banking.
