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Investment Banking is one of the prestigious and profitable career options in the Finance industry. Investment Bankers are so in high demand because they are the financial advisors of corporations and even of the government. They are responsible to help their clients in raising money either by the issuance of stocks or by doing negotiations while buying a rival’s company. These financial advisors also help in arranging the sale of the company itself.
Entry-level investment banking associates can easily earn well for themselves, with salaries of Rs.7-8 LPA or more frequently paid in their first year. Experienced investment bankers who worked their way up the ranks can easily earn Rs. 12 LPA to Rs. 85 LPA. The source of this data is Glassdoor and you can even check other sources to check the pay scale of investment banking.
The demand for Investment bankers is exponentially high in India and in the rest of 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.
After the pandemic, there has been a lot of uncertainties in the stock market and investments. Nevertheless, Investment Bankers have maintained this sector 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.
Average Salary of an Investment Banker in India 2022
The average salary of an Investment Banker is Rs. 12 LPA and this salary can be extended to Rs. 85 LPA as the professional gains experience in this field. However, if a candidate is just starting his career in this field then he might get Rs. 4-7 LPA and, this salary package also depends upon the skills a professional has gained over time.
The revenue of investment bankers has increased dramatically in recent years, as businesses seek their assistance in raising financing and capital for their projects. 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 earned Rs. 8.5 million as a salary package, an increase of 10.8% over the previous year.
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 way 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 assisting it in 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 its financial objectives.
Investment bankers’ major responsibilities include reviewing the organization’s goals and requirements using a retainer. Normally, an organisation would supply all of the essential financial information to the investment banker. Depending on the financial health and aims of the company, the investment banker may devise a strategy that includes issuing and selling stocks, selling bonds, taking on debt or a combination of these. To be very specific, an Investment Banker helps organizations and government agencies in raising their capital gains by giving them investment or financial advice. Hence, this is the reason that this job is the most profitable one.
Skills That Are Important For An Investment Banker
Apart from educational qualifications, an investment banker must have some in-depth knowledge of certain finance management skills and these skills can even help you in earning a good salary package or better than others. The skills that are required to excel in the investment banking field are mentioned below:
- Investment Management
- Banking
- Mergers and Acquisitions
- Financial Analysis
- Financial Modelling
- Microsoft Excel
Note: These are the popular skills in investment banking that can actually affect your salary package and you can even get more than average.
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 will 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 the market worth that can offer you job security and you will be far ahead of your competition. Some of the major skills that you need to inculcate in yourself to perform impeccably in this industry are Financial Analysis, Financial Modelling, Mergers & Acquisitions.
Having these in-demand skills can actually help you stay relevant and important in the industry or we can say that these skills are worth your while. Specific abilities, on the other hand, tend to provide investment bankers with higher-than-average income. Microsoft Excel is the most valuable expertise for these individuals, as investment bankers with this skill make 24 per cent more than the average, stated by payscale.
#2 Level Of Experience
The level of experience in the same industry is a factor that is directly proportional to the salary package and job security in the industry. It is simple logic that gaining a good experience will increase your worth in the industry and you will automatically get a good salary package.
Beginners in this industry earn much less than highly experienced workers. Entry-level and early-career investment bankers earn at least 34% less than the national average. Mid-career investment bankers, on the other hand, earn 67 per cent more than the average, while late-career ones earn 219 per cent more.
#3 Company
The company you are working in plays the most important part in determining your paycheck or salary package. The pre-eminent employers who have great worth in the industry will definitely pay you well and can offer you job security. Some of the well-known employers or companies are investment banks, Morgan Stanley, IBM, Goldman Sachs, and others. The average salary of an investment banker at Morgan Stanley is Rs. 15-16 LPA, according to the data of Glassdoor.
#4 Your Location
Your location can actually affect how much you earn as an investment banker and this is simply because in some cities there is a high demand for investment bankers than in others. The cost of the property also differs as per the location which can also be an important factor. So far Mumbai is considered to be the beneficial city in India for Investment Bankers as the average salary of an investment banker in this city is more than Rs. 18 LPA.
#5 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 of financial and investment advice exponentially. Companies need the help of investment bankers to invest, raise funds, buy rival’s assets, sell their own assets, and also increase the return on investment. Hence, Investment Banking has become one of the profitable professions in India and the rest of the world.
However, the salaries of investment bankers do differ because of the different companies they are working with. As per the recent reports, the employers that pay the highest packages to investment bankers are investment banks only such as ICICI Securities, HDFC Bank, Goldman Sachs, Morgan Stanley, Axis Bank, and so forth. The average salary of an investment banker at Morgan Stanley is Rs. 15-16 LPA and it is Rs. 13-14 LPA at IndusInd Bank. On top of everything, Edelweiss Financial Group provides Rs. 89-96 LPA to investment bankers as per the data of Glassdoor.
#6 JP Morgan Chase
JP Morgan Chase & Co. is a multinational bank of America that deals with financial services. JP Morgan is the world’s largest bank based on its market capitalization and the fifth largest bank by 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. | 23 Lakhs Per Annum | 2-9 years |
#7 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. This investment bank helps people, institutions, and governments in raising and distributing capital to achieve goals. 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 | 15-16 Lakhs Per Annum | 0-8 years |
#8 ICICI Bank
ICICI is an Indian multinational bank and a financial services company that has a network of more than 97,000 employees and more than 3 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 | 8 Lakhs Per Annum | 0-5 years |
#9 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 78,000 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 | 12 Lakhs Per Annum | 0-5 years |
#10 Kotak Mahindra
Kotak Mahindra is an Indian private sector bank and a financial services company. Kotak Mahindra is India’s third-largest bank in terms of assets and market capitalizations. It has subsidiaries like Kotak Securities, Kotak Life Insurance, 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 | 2.5 Lakhs Per Annum | 0-3 years |
#11 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 | 4-5 Lakhs Per Annum | 0-5 years |
#12 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 its revenue was estimated as Rs. 10,769 crores by 2021. 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 | 4-5 Lakhs Per Annum | 1-9 years |
#13 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 | 16- 43 Lakhs Per Annum | 2-10 years |
Investment Banker Salary: Location Wise
The role of Investment Banker is essential to run the money flow in Finance, Banking, or other sectors that is related to Investment. However, as you know what responsibilities an Investment Banker walks on their shoulders. The salary package of an Investment Banker has also differed from place to location within and abroad. Check out below what an average salary is being offered to Investment bankers location-wise.
Investment Banker Salary in Mumbai, Maharashtra
Mumbai is a city that has headquarters of plenty of Indian banks and hence the average salary of an investment banker is higher than other cities in India. However, the salary package of a financial advisor will also differ on the basis of private and public sectors. So in the table below you will find the differentiation between the salary packages of private and public sector companies situated in Mumbai.
| Sector | Average Salary (INR) |
| Public Sector | 8 Lakhs Per Annum |
| Private Sector | 12 Lakhs Per Annum |
Investment Banker Salary in Hyderabad
Hyderabad is the state capital as well as the largest city in Telangana. Hyderabad is also noted for being the highest contributor to the GDP (GDP). Many small enterprises and startups are emerging from Hyderabad and gaining international traction.
| Sector | Average Salary (INR) |
| Public Sector | 9 Lakhs Per Annum |
| Private Sector | 11 Lakhs Per Annum |
Investment Banker Salary in Delhi
Delhi is the second wealthiest city in India and has the second-highest per capita income in India. Delhi is the hub of major businesses in India and its economy is growing by leaps and bounds. You can check the average salary packages of different companies offered to investment bankers in Delhi.
| Company/Bank Name | Average Salary (INR) |
| Standard Chartered Bank | 6 LPA |
| Axis Bank | 4.5 LPA |
| ICICI Bank | 2 LPA |
| HDFC Bank | 4.25 LPA |
| Kotak Mahindra Bank | 4 LPA |
Investment Banker Salary in Chennai
In Chennai, an Investment Banker can easily earn around 4-5 Lakhs Per Annum and the salary package can vary as per the company as well. You can check the average salary earned in the investment banking domain in the table below:
| Company/Bank Name | Average Salary (INR) |
| HDFC Bank | 5 LPA |
| Barclays | 4.5 LPA |
| Accenture | 3 LPA |
Investment Banker Salary in Bengaluru
Bangalore is another city that is famous for its booming IT sector and hub for different tech companies but if you are a candidate who wants to build a career in the capital market, equities, and derivatives, you ought to enroll yourself in an investment banking job training in Bangalore.
| Company/Bank Name | Average Salary (INR) |
| ICICI Bank | 5.2 LPA |
| Accenture | 2.5-44 LPA |
| Infosys | 10 LPA |
| Wipro | 8.8 LPA |
| Standard Chartered | 5 LPA |
| Bank of America | 12 LPA |
Investment Banker Salary: Experience Wise
Investment Banking is one of the 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 as you will get a better idea of the market then. Check the details below to get an idea of how much you can earn after gaining experience.
Investment Banker Fresher Salary
Freshers are those who have either less than a year of experience or no experience and such professionals get around Rs. 5-8 Lakhs Per Annum as per the survey from different employees.
Investment Banker Mid Level Salary
When the individual gets more than a year of work experience in the investment banking field or 1-4 years of work experience then he can claim a salary above 8 LPA. A mid-level experienced investment banker can easily demand a good salary package that is Rs. 8-10 LPA. Also, if you got experience of 5-9 years then you can claim a salary of around Rs. 15-20 Lakhs Per Annum.
Investment Banker Senior Level Salary
A senior-level investment banker is someone who has more than 10 years of work experience. The investment banker with 10-19 years of work experience can get a salary of Rs. 30 LPA. However, if an investment banker has more than 19 years of work experience then he will get Rs. 40 Lakhs Per Annum. Source: Payscale
Investment Banker Salary In The Rest of The World
It’s not an investment banking profile but it’s with every profile that the salary package differs with the country. So if you are working in a country other than India then your salary package will be extremely different from India. The financial condition or the economy of the country plays an important role in paying salary packages to investment bankers.
Investment Banker Salary In United States Of America
The first base wage of investment analysts in a financially healthy country such as the United States is expected to be between $80,540 and $1,00,000 per year. These statistics are not perfect because they do not include signing incentives, which can range from $5000 to $15,000 depending on the size of the firm.
Investment Banker Salary In London
After New York, London is the second most important destination for investment bankers. Entry-level investment bankers are given a basic salary of 29,000 GBP, which rises to 48,817 GBP in the first year and 70,000 GBP in the third year.
Investment Banker Salary In United Kingdom
In the entire United Kingdom an investment banker will get an average salary package of 48,886 GBP and if you are a fresher then you will probably start from 30,000 GBP.
Investment Banker Salary In Switzerland
A Financial Analyst or an investment banker can earn up to CHF 1 LPA and the highest package that experienced investment bankers get is CHF 5 LPA.
How To Become An Investment Banker? [Investment Banker Qualifications]
An investment banker is responsible for a wide range of activities and has to handle important financial affairs of the company. As a result, businesses are constantly on the lookout for skilled and certified employees to fill this function. In India, an MBA in finance is required to work as an investment banker. It will teach you the skills you need to carry out all of the industry standards’ tasks and handle company challenges.
However, you can even pursue dual specializations in your MBA program like MBA in Banking and Finance to get an edge over others in this industry. At College Vidya, you can find the best online MBA universities that can offer you both MBA in Finance and MBA in Banking & Finance. All the universities at College Vidya are approved by the University Grants Commission and have other accreditations. Some of the best online universities to pursue an online MBA in Finance are:
- Narsee Monjee Institute of Management Studies
- Jain Online
- Chandigarh University
- University of Petroleum and Energy Studies (UPES)
- Manipal Academy of Higher Education
- BITS Pilani
- Lovely Professional University (LPU)
Future Of Investment Bankers in India
The current trend in India’s economic activities suggests that the investment banking sector is likely to expand. Digitalization, combined with emerging technologies, has established a good route for the future of investment banking in India. Investment banking is predicted to grow to become 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
In this blog, you will figure out how an investment banker’s salary varies as per the location, experience, company, and skills. You will get the average salary of investment bankers as per companies, locations, and experience. You will also get the benefit of getting the details about the recruiters where you can work as an investment banker.
