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Home > Articles > How to Become an Investment Banker in India: Career Guide with all the Necessary Information
Updated on 23rd March, 2023 , 13 min read
Investment bankers are primarily responsible for raising funds for corporations, governments, and other financial institutions. Students can also pursue an MBA in Finance or a Chartered Financial Analyst certification to work as an investment banker. Investment bankers will be Chartered Accountants or students completing CA courses. As an investment banker with over 22 years of expertise, one may make up to INR 30 LPA. A career as an investment banker provides rapid advancement and significant compensation increases. Investment bankers earn an average income of INR 7.50 - 11 LPA. Students who have completed an MBA finance course are more likely to work in the IB industry.
A highly skilled individual who provides a variety of financial services to businesses, governments, and investors is known as an investment banker. They assist businesses in obtaining business loans; issuing stocks and bonds; setting security prices; raising stock capital; allocating resources; negotiating mergers; and managing investments. They serve as the intermediary between private or public firms and investors. They would provide financial advice and guidance on the types of securities to issue, such as stocks and bonds, when and how to issue them, and what price to establish for each instrument.
The following table details about the investment bankers-
Details |
Particulars |
Industry |
Banking and Finance |
Eligibility Criteria |
Students must have completed Class 12 as well as an Undergraduate or Postgraduate Degree in Banking or Finance. |
Average Starting Salary (INR) |
Rs. 4.50 - 6 lakh |
Top Recruiters |
Goldman Sachs, Merrill Lynch, JP Morgan, HSBC, and many others. |
In general, an investment bank is a private firm that provides financial and other services to corporations, people, and governments. It offers services such as obtaining financial resources through underwriting and acting as the client's agent in the issue of securities. It may also help corporations with mergers and acquisitions (M&A) and other auxiliary sectors like derivatives and equities securities trading, market making, and FICC services. An investment bank differs from a commercial or retail bank in that it does not take deposits.
Many young millennials are lured to this line of work because of its status and income possibilities, but this should not be their primary motivator. People who work in investment banking typically need to be practical and think beyond the box in order to be innovative. The following are some actual reasons why investment banking may be a smart career choice-
The following are the eligibility criteria for investment banker in India-
Because of the intense and demanding nature of the job, becoming an investment banker can be difficult. Investment bankers frequently work more than 80 hours a week, must adhere to stringent rules, and deal with high-pressure situations. Accounting, economics, finance, mathematics, statistics, data analytics, and banking technology are all required. In order to connect and create relationships with prominent and incredibly affluent individuals, they must also have great communication skills and a confident, outgoing attitude.
It might take 7 years or more to become an investment banker. After completing your 10+2 test, it usually takes 3 or 4 years to get your bachelor's degree. After that, you can pursue a 2-year master's degree program. It will take you another 3 to 6 years to complete a doctoral degree. Furthermore, earning credentials might take anything from 6 months to 4 years.
Some of the primary tasks of an Investment Banker in India are given below-
The purpose of investment banking is to act as a middleman between a firm and investors. They aid in the capitalization of businesses, governments, and other institutions. The following five steps are discussed below-
Candidates for the position of investment banker must have completed their upper secondary education (10+2) with a minimum aggregate score of 50% or equivalent CGPA from a recognized board. Candidates for the 10+2 board examinations can select from the arts, commerce, or science courses. However, in the commerce stream, studying mathematics, accounting, economics, business, and computer technology may be more advantageous.
An entry-level position with an investment bank requires a 3 or 4-year bachelor's degree. Bachelor of Commerce (B.Com), Bachelor of Arts (B.A.) in finance, B.A. Economics and Bachelor of Business Administration (BBA) Finance are among the best alternatives for a career as an Investment Banker.
A two-year Master of Business Administration (MBA) in financial management is a sought-after postgraduate degree for prospective investment bankers. Candidates seeking to become investment bankers can also pursue a Master of Science (MS) in finance. The National Stock Exchange (NSE) Academy provides 6 - 9-month postgraduate programs in investment banking and capital markets, banking and financial planning, business analytics, and management accounting.
A professional certificate such as the Chartered Financial Analyst (CFA) can assist applicants to enhance their careers as investment bankers. The CFA program provides extensive and practical financial and investing instruction. Candidates may apply for this program after earning their bachelor's degree. The course might last anywhere from one to four years.
Internships in investment banking may be located on job boards like Indeed and bank websites, as well as through campus placements, networking, and HR consultants. Internships in investment banks might last anywhere from 2 months to 2 years. In addition to financial training, candidates may learn to enhance their communication, presentation, and negotiating skills. Based on how well they do throughout their internship, they may be offered a permanent position as an investment banker.
Investment banking is a vocation that necessitates a thorough understanding of financial ideas and a command of statistics and spreadsheets. It necessitates extensive financial expertise. And the Chartered Accountancy course curriculum includes comprehensive coverage of finance. CA Finals consists of eight disciplines, one of which is finance: Strategic Financial Management.
This signifies that a CA has acquired financial understanding. The course prepares CAs for an Investment Banker role by familiarising them with financial ideas and theories. To train specifically in finance, one will need to supplement their Chartered Accountancy degree with a CFA, MBA with a finance focus, or an FRM degree. Having any of these degrees in addition to a CA degree puts one ahead of the competition. CA pay in Investment Banking in India is significantly more than that of an investment banker with another degree.
The following are the stages and training requirements to pursue a career in investment banking-
The courses available to students aspiring to be investment bankers are listed below. Some of these courses are also available to students via distance learning-
BCom Hons is a three-year undergraduate study in commerce that covers disciplines such as accounting, investment, taxation, economics, financial management, and so on. This course is intended to provide qualified students with expertise in a wide variety of skills necessary in the financial and investment sectors. Students who complete the BBA program and the subsequent PG course will become investment bankers.
Admission Procedure: BCom Hons admissions are based on a merit-based admissions procedure, followed by a personal interview round. Some colleges hold their own BCom Hons admission exams.
Entrance Exams |
Application Date |
Exam Date |
BHU CET |
February 2022 |
May 2022 |
IPU CET |
4th March - 31st May 2022 |
18th - 19th June 2022 (UG and B.Ed) 23rd - 25th June 2022 (PG and Ph.D.) |
BBA Finance is a three-year undergraduate program that aims to provide students with a practical and theoretical understanding of many financial components, such as investing, insurance, and so on. This program prepares graduates for entry-level positions in finance and business. After finishing the BBA finance and PG programs, students will become investment bankers.
Admission Procedure: If the rules are followed, admission to the BBA Finance program is a pretty straightforward procedure. The following are some of the entrances tests which are listed below-
Entrance Exams |
Registration Date |
Exam Dates |
CUET 2022 |
6th April - 26th June 2022 |
15th,16th,19th, 20th July 2022 (UG) 4th, 5th, 6th, 7th, 8th, and 10th August 2022 |
DU JAT 2022 |
April - June 2022 |
July / August 2022 |
IPMAT 2022 |
26th March- 25th May 2022 (Indore Application) 21st February - 12th May 2022 (Rohtak Application) |
2nd July 2022 (Indore Exam) 26th June 2022 (Rohtak Exam) |
IPU CET 2022 |
4th March - 31st May 2022 |
18th - 19th June 2022 (UG and B.Ed) 23rd - 25th June 2022 (PG and Ph.D.) |
NMIMS NPAT 2022 |
20th June 2022 |
1st April - 26th June 2022 |
25th January - 15th June 2022 |
3rd July 2022 |
MBA Financial Management is a two-year postgraduate program designed to prepare students for management and related jobs in the Investment and Finance business. This course teaches students about investment, administration, budgeting, investment results, and financial asset monitoring. Entrance tests are used to determine admission to the MBA Financial Management program. However, a few universities also accept applicants based on their undergraduate grades. The following is the application process for the same-
Entrance Exams |
Registration Date |
Exam Dates |
3rd August - 23rd September 2022 |
27th November 2022 |
|
16th February - 17th March 2022 |
9th April 2022(3:00 PM to 6:00 PM) |
|
29th August 2022 (PBT) 12th September 2022 (CBT) 13th September 2022 (IBT) |
4th September 2022 (PBT) 18th September 2022 (CBT) 17th September 2022 (IBT) |
|
July 2022 |
1st January 2023 |
The choices available to applicants after becoming an investment banker are shown below-
There are several courses available which help in the advancement of the profession as an Investment Banker. Management courses are provided at a plethora of universities throughout India. The following is a list of the best colleges in India-
An investment banker's career progresses in a predictable manner. The following are the positions in the investment banking hierarchy-
High-paying employment is one of the aspects that contribute to an investment banker's becoming one of the most sought-after occupations. The following is a baseline investment banker's pay in India and internationally for typical job profiles-
Category |
Salary per Annum (INR) |
Account Manager |
Rs. 7 - 12 lakh |
Rs. 6 - 10 lakh |
|
Business Analyst |
Rs. 6 - 12 lakh |
Cheif Financial Analyst |
Rs. 15 - 20 lakh |
Equity Research Analyst |
Rs. 7.5 - 12 lakh |
Financial Analyst |
Rs. 5 - 8 lakh |
Relationship Manager |
Rs. 7 - 9 lakh |
Research Analyst |
Rs. 6 - 10 lakh |
Investment banking is regarded to be one of the most lucrative jobs in the world. Some of the benefits of working as an investment banker are as follows-
Investment banking is becoming a viable employment option for India's active and motivated young. The following are some of the reasons why young people in India aspire to pursue this career-
The following AIBI-registered organizations have already established themselves in the Indian investment banking business-
An excellent investment banking aspirant should have a strong analytical mind as well as the capacity to function as part of a team. They should also be able to think critically and be eager to learn new things. Some of the skills required to become an investment banker in India are listed below-
The following are some of the recruiters for investment banking in India-
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By - Nikita Parmar 2024-09-06 10:59:22 , 6 min readAns. The average cost for Indian students to become Investment Bankers overseas ranges from INR 20,00,000 to INR 1 Cr.
Ans. Yes, several countries provide scholarships to deserving students. To be eligible for the scholarship, they must meet the conditions listed. Some of the scholarships cover all of the student’s expenses, from living expenses to supplementary stipends.
Ans. BA in Finance, BBA in Finance and Investment, MBA in Investment Banking, and various certificate and diploma degrees are among the top options for students. These courses will give specialized expertise in Investment Banking and associated fields.
Ans. To flourish in their job, an investment banker must be very ambitious, competitive, detail-oriented, quantitative, polished, and presentable. These are some of the jobs that will help them stay in the sector for a long time.
Ans. Internships are quite important during the students’ courses. It assists students in comprehending the fundamental operation of an organization as well as the vital principles of the profession.
Ans. It is entirely dependent on the priorities of the individual doing the task. They can, however, make greater money outside of India