Investment Bankers in India got $1.3 billion salary last year, Know how to become an Investment Banker

In 2023, investment bankers made a lot of money – $1.3 billion in fees. This is 28% more than the year before, and it’s the highest amount since they started keeping records in 2000.

#1) For helping with IPOs and follow-on offers, called equity capital market (ECM) underwriting fees, they earned $343.5 million. That’s a big increase of 68% from the previous year.

#2) But when it comes to helping with mergers and acquisitions (M&A), they earned $416.1 million, which is 7% less than the year before. The total value of M&A deals also dropped to $83.8 billion, the lowest in three years and a 50.6% decline.

The State Bank of India earned the most money from investment banking fees overall, totaling $102.7 million, making up 7.7% of all of India’s investment banking fees. IIFL Holdings was the top earner in ECM underwriting, making $3.7 billion and holding a 12% market share.

How to become investment banker?

Becoming an investment banker in India requires both academic qualifications and specific skill sets. Here’s a roadmap to guide you:

Education:

• Bachelor’s Degree: While having any bachelor’s degree can technically qualify you for entry-level positions, majoring in finance, economics, accounting, or business is ideal. These degrees provide crucial foundational knowledge in financial markets, accounting principles, and economic theories.
• Master’s Degree: An MBA, preferably with a specialization in finance, significantly boosts your prospects. Top-ranked Indian business schools like IIMs, XLRI, and SPJIMR are highly valued by investment banks.
• Professional Qualifications: Consider pursuing the Chartered Financial Analyst (CFA) designation. This globally recognized program demonstrates your expertise in financial analysis and portfolio management. Other valuable options include Chartered Accountant (CA) or certifications in financial modeling or risk management.

Skills and Experiences:

• Technical Skills: Develop strong analytical and quantitative skills with proficiency in financial modeling, valuation techniques, and data analysis tools like Excel and Bloomberg.
• Communication Skills: Hone your written and verbal communication skills to present complex financial information clearly and persuasively, both to clients and colleagues.
• Problem-Solving and Attention to Detail: The ability to think critically, solve complex problems under pressure, and maintain meticulous attention to detail is crucial for success in this demanding field.
• Networking: Build a strong network within the finance industry by attending industry events, connecting with professionals on LinkedIn, and reaching out to alumni from your education institutions.

Work

• Internships: Look for internship opportunities at investment banks during your studies. This provides valuable practical experience and helps you build your network.
• Case Competitions: Participate in case competitions organized by business schools and investment banks. This allows you to showcase your analytical and problem-solving skills to potential employers.
• Develop a strong work ethic: Investment banking is known for its long hours and demanding work environment. Be prepared to put in the extra effort and demonstrate resilience.