Investment banking is a vast domain and has a huge career growth potential. An investment banker’s main role is to guide how to handle all the financial issues of the government and different companies. From a financial point of view, they work as a bridge between any business and its investors.
If you have good knowledge and experience, you can get a job in a prestigious and profitable finance company.
Table of Content:
Watch this video on Investment Banking to understand Investment Banking in minutes!
Who is an Investment Banker?
There are two types of banks: Commercial Banks and Investment Banks.
- The Commercial Bank is where any individual’s accounts are managed. In the case of an investment bank, the accounts, financial advice, and recommendations are provided by the investment banker to any corporates or companies.
Investment bankers look after companies’ funds carefully and safely and also guide the company on how to use or proceed with the funds in the right direction.
Generally, they don’t work for retailers or any personal bank account holders, but for the big MNCs and the Government.
Want to know how to succeed in your Investment Banking interview? Read our blog for the Top Investment Banking Interview Questions prepared by experts!
What does an Investment Banker do?
As part of the investment banking job description, the responsibilities of an investment banker are providing financial advice, facilitating mergers and acquisitions, and assisting organizations in raising capital. To achieve the financial objective of their clients, they must be expertise in the financial markets.
Below we will be discussing the job descriptions of an investment banker comprehensively so that you can dive more deeply into the world of investment banking!
- The investment banker researches on behalf of the clients and identifies potential investors who might invest in them so that the company can raise capital or funds for any expansion.
- Investment Bankers use financial models to analyze various investment opportunities and help clients make informed decisions based on their previous investments.
- They must do a feasibility study on potential investment targets and assess their customers’ financial condition, potential risks, and opportunities.
- Moreover, Investments Bankers manage whatever mergers or acquisitions a company wishes to do to ensure a smooth workflow.
From these deals, the investment bankers take the charges from the corporates and get to manage themselves with higher salaries.
So picture yourself working as an investment banker and earning a whopping salary!
Take your career to the next level with an Investment Banking Certification from IIM Ranchi!
Skills Required for an Investment Banker
There is a demand for a lot of financial modeling and valuations. It takes a lot of time for Bank Analysts and Associates to work in and create models to advise their clients utilizing various valuation techniques.
Some of the skills that are required for a career in investment banking are listed here in the following order:
- Investment bankers need to follow the financial modeling technique. Financial modeling is the method of a real system analysis that helps in determining the various future cash flows, any financial needs, whether to invest or not in a particular business, and valuation.
- Various types of financial models are also used by an investment banker to find out if any acquisitions and the creation of new assets or merger is possible.
- In an investment bank, professionals in the field of relationship management play a crucial role in the investment management team.
- A group of personal or client-facing experts together deliver specialist advice to the bank’s client management. It ranges from various wealthy and powerful individuals to financial organizations such as trusts, pension funds, and insurance companies.
- When a client opens an account or contacts an investment bank for any financial guidance, they are usually assigned a single relationship manager. They are assigned to develop close relationships with each of their clients.
- Investment bankers need to follow business valuations, which is a process of assessing the economic valuations of a company.
- It can be used to find out the fair value of a company for different purposes including sale value, partnering, ownership, and taxation.
- They need to have a proper understanding of the negotiation processes.
- Negotiation is the process through which clients adopt a common understanding and reach a mutual conclusion without the intervention of any third party.
Also, have a look at our blog investment banking vs commercial banking to understand the difference in the most precise manner.
Investment Banker Salary in India
The average pay scale of an investment banker’s salary in India is 13 LPA, and this is the base pay above which additional compensation can be offered, which can average 2,90,000 INR as per a survey.
So this is the average salary of an investment banker in India and will further grow as per experience and job responsibilities.
Investment Banker Job Roles and their Salaries
Now you have a basic understanding of investment banking and the skills that are required to become an investment banker. So moving forward, you will get to know about the various roles along with the salaries of an investment banker.
Investment Banking Associate
The average investment banking associate’s salary in India is 10 Lakhs. However, the salaries can be ranging from 3.5 LPA to 36 LPA and can vary depending on the company.
Anti-Money Laundering(AML) Specialist
The average yearly compensation for an Anti-Money Laundering Specialist in India is 8 Lakhs, while individual company salaries can vary from 4.2 Lakhs to 11.5 Lakhs.
The average yearly income for a Financial Analyst in India is 7.4 Lakhs, with salaries ranging from 3.6 Lakhs to 12.6 Lakhs. Although this might vary based on the organization.
An accountant typically earns anything from 2.5 lakhs to 7.2 lakhs per year, with an average pay of 3.8 lakhs. However, this might change depending on the company.
The average yearly income for an accounts manager in India is 7.2 lakhs, with salaries ranging from 3.6 lakhs to 14.6 lakhs. However, this can vary based on the business.
Risk Management Analyst
The average yearly income of a risk management analyst is 6 lakhs, with salaries ranging from 3 LPA to 18 LPA.
Capital Market Operations Consultant
The average salary for a capital market operations consultant is 18.2 LPA in India and mostly ranges from ₹12.8 lakhs per year to ₹35 lakhs per year and this might change depending on the company.
The average yearly income for credit managers in India is 10.5 lakhs, with salaries ranging from 5.6 lakhs to 16 lakhs.
Investment Banker Salary According to the Experience
Investment bankers are in demand in comparison, because in the last few years, the growing uncertainty regarding investment has raised investment advice. To invest, raise funds, merge, buy rival assets, sell or buy assets, and also increase the return on investment, companies need the help of investment bankers.
That’s why the investment banking profession has become one of the most trending professions in India and the rest of the world.
However, the salaries of investment bankers differ compared with the different companies they are working with.
- Monthly Salaries(In rupees):
- Average Salary 25000
- Starting Salary 25000
- Junior Level Salary 20000
- Senior Level Salary 45000
- Salary Information:
The interns are paid a good stipend. This amount depends on the abilities of the interns, the projects, and the tasks. All these things are considered because nearly all interns will be recent graduates or pursuing graduation with no work experience. The monthly stipend, with incentives, tips, and overtime compensation might reach up to Rs. 45,000 per month.
Junior Investment Banker
- Monthly Salaries( In rupees):
- Average Salary 70000
- Starting Salary 55000
- Junior Level Salary 60000
- Senior Level Salary 110000
- Salary Information:
Investment bankers start with a monthly salary of Rs. 55,000 for entry-level with less than one experience of 1 year. A junior investment banker can make up to Rs. 70,000 per month after having some good experience in the field. They earn a compensation of roughly 1 lakh per month, which includes tips, bonuses, etc.
Senior Investment Banker
- Monthly Salaries( In rupees):
- Average Salary 220000
- Starting Salary 110000
- Junior Level Salary 130000
- Senior Level Salary 550000
- Salary Information:
A senior investment banker’s pay is influenced by different types of variables, including experience level. An investment banker’s compensation ranges from Rs. 250000 per month to over Rs. 550000 per month at the highest.
Get 100% Hike!
Master Most in Demand Skills Now !
Top Companies that Hire Investment Bankers
Top companies are rated based on anonymous employee reviews and are displayed with the total number of employees who have reviewed this company, their average salary, and the number of job openings.
Some of the companies hiring investment bankers are listed below for your reference!
JP Morgan Chase
JP Morgan Chase is an investment company for financial services with its headquarters in New York. It is a major international firm for financial services. In India, the average salary for an investment banker at JP Morgan Chase is 27.6 LPA.
The annual salary is somewhere between 12 lakhs and 44.2 lakhs.
Morgan Stanley is a famous American global investment company that aims to provide financial and investing services. It is one of the top most paying investment banking organizations in India.
At Morgan Stanley, an investment banker’s annual pay averages out at 14.8 lakhs and can vary from 6 lakhs to 40 lakhs.
One of the world’s biggest investment banking, management, and securities companies is Goldman Sachs. The average annual compensation for an Investment Banker at Goldman Sachs is 24 lakhs, with salaries ranging from 12.3 lakhs to 34.5 lakhs.
Citigroup Inc., also known as Citi, is an American multinational financial services and investment bank with its headquarters in New York City. It is one of America’s Big Four financial institutions. The average pay at Citibank for employees is 21.6 LPA, with most employees earning between 15.4 LPA and 48.8 LPA.
Axis Bank is one of the top private-based banks in India, headquartered in Mumbai, Maharashtra. This Indian banking and financial services company provides services to SMEs, mid-sized businesses, and large businesses.
At Axis Bank, an investment banker makes a salary of 24.4 LPA on average. The salary varies from 18.6 lakhs to 31 lakhs every year.
Bank of America
The Bank of America is an American global investment bank and holding company for financial services referred to as BoA. After JPMorgan Chase, it is the second-largest bank in the United States and, according to market value, the second-largest bank worldwide.
The average yearly income for a Bank of America investment banking analyst in India is 18.5 Lakhs, with salaries ranging from 14.2 LPA to 24 LPA.
Unlock your high-finance potential. Enroll in our Investment Banking course in Pune today!
The investment banking job description involves a diverse range of responsibilities that are essential to the success of the financial sector. To succeed in this field, individuals must possess financial expertise, strong analytical skills, and the ability to adapt to any challenging situation.
However, if you are willing to put in your efforts, and committed to your goals, a career in investment banking can be a rewarding choice.
If you have any queries you can drop your questions on our Community Page and start a discussion.