Investment Bankers in India getting more salary than Hong Kong and Singapore

According to Bloomberg Intelligence, finance professionals in India are projected to receive higher salary increases compared to those in Hong Kong and Singapore this year. This trend reflects how companies are capitalizing on India’s economic growth while China’s economy slows down. Analyst Sarah Jane Mahmud, citing data from consulting firm Aon, predicts that salaries in India could rise by 10% in 2024, whereas the increase is expected to be 4% in the two financial hubs.

Financial institutions such as HSBC Holdings Plc, Julius Baer Group Ltd., Mitsubishi UFJ Financial Group Inc., and DBS Group Holdings Ltd. are expanding their operations in India to tap into the country’s growing wealth. Investment bankers in India’s major urban centers, such as Mumbai and GIFT city, already earn more than their counterparts in Singapore and Hong Kong. The average base salary for investment bankers in India is 4.5% higher than in Hong Kong and 7.7% higher than in Singapore, according to Bloomberg Intelligence’s analysis of a survey by recruiter Michael Page. However, private bankers’ compensation in non-executive roles lags behind by 50% to 78%. As India’s wealth industry continues to grow, this pay gap is expected to narrow.

Amit Agarwal, managing partner at search firm Stanton Chase, stated that salaries in India will continue to rise due to the significant demand-supply gap at senior levels, as well as the increasing need for talent in compliance, risk assessment, and technology. Banks are willing to pay more for heads of businesses, and it is common for senior leaders to receive salaries exceeding $1 million.

Despite India having higher income tax rates and weaker infrastructure compared to Singapore and Hong Kong, the lower cost of living in India is considered a benefit. Government statistics reveal that the average monthly rent in the upscale Bandra area of Mumbai is $1.76 per square foot, whereas in Hong Kong, it is $5.29, and in Singapore, it is $5.09.