Category

Investment Banking

Category

Investment Banking companies typically are located in tier- 1 cities like Mumbai, Delhi, Bangalore and Hyderabad with major IB companies in Mumbai. As Mumbai is termed as a financial capital, thus, along with stock exchanges, insurance companies, brokerage firms, mutual funds, Mumbai also houses to investment banking companies on a large scale.

And, with the growth of tier- 1 cities in financial matters, investment banking companies are also shifting to places like Delhi NCR, Bangalore and Hyderabad.

If you’re looking to join an investment banking company then you are required to shift to these locations as cities like Mumbai, Bangalore, Delhi NCR, Hyderabad etc. are a hub of the financial services industry.

International Investment Banks having presence in India

Goldman Sachs

One of the top global investment banks which is well respected in its own field. It offers various services including investment banking, securities services, Global Markets, Research and wealth management.

JP Morgan Chase

It is a multinational bank offering services in various financial services domain. It is the largest bank ranked by S&P Global. It started its operations by offering commercial banking services and later expanded to other areas.

Citibank

Founded in 1812, it started as a banking division into consumer space. Citibank is into most of the financial services activities ranging from consumer banking services to HNIs services to Corporate Banking.

Morgan Stanley

It is a financial services Business conglomerate operating in various services including wealth management, research, investment management etc. across 36 countries. 

Bank of America Merrill Lynch

It is one of the largest banks of the world operating in similar services as to other largest banks. Now, its name has changed to Bofa securities. It is different from Merrill which is a wealth management division.

Credit Suisse

It is a global Investment bank and financial services company that is also engaged in services like private equity, asset management, research etc.

Deutsche Bank

Deutsche Bank is a global investment bank with its major Business into Investment Banking division. It is present across in more than 60 countries. It is into private banking, Business banking, insurance and wealth management services as well.

UBS

It is a global financial services company operating in more than 50 countries. It largely operates in four interdependent divisions- Global Wealth Management, Personal & Corporate Banking, Asset Management and Investment Banking.

Barclays Bank

Started by James Barclay, Barclays is a British originated multinational Bank currently operating across the globe. It is into services like private banking, personal banking, corporate banking and investment banking.

BNP Paribus

It is a bank based out of Paris and currently is one of the largest (8th) banks of the world. It has presence in over 70+ countries. It helps various corporates and its clients in Investment Banking solutions.

HSBC

HSBC, Hong Kong and Shanghai Banking Corporation, is another one of the largest banks of the world (7th largest) spread across more than 65+ countries through 4,000 offices. HSBC first originated in Hong Kong and then later shifted to London.  It is into various Businesses including commercial banking, investment banking, private banking etc.

Leading Investment Banks of India

Avendus Capital 

Avendus Capital is one of the largest Indian originated Investment Banks that offers various financial services including M&A, Due Dilligence, Private Equity, Investment Banking, private placement, restructuring, recapitalization, turnaround, and valuation advisory services.

  • Established Year: 1999
  • Type: Boutique Investment Banking Firm
  • Business: M&A, Due Dilligence, Private Equity, Investment Banking
  • Headquarters: Mumbai
  • Careers Link: https://www.avendus.com/india/careers

Axis Capital Limited

Axis Capital Limited, which was earlier called as Enam Securities Private Limited and a part of Axis Bank, is one of the leading Investment Banks engaged in boutique and mid-market investment banking services. It is currently into various services including Equity Capital Markets, M&A, Structured Finance, Private Equity and Investment Banking.

  • Established Year: 2005
  • Type: Wholly owned subsidiary of Axis Bank
  • Business: Equity Capital Markets, M&A, Structured Finance, Private Equity, Investment Banking
  • Headquarters: Mumbai
  • Careers Link: https://www.axiscapital.co.in/careers

Edelweiss Financial Services Limited

Edelweiss Financial Services Limited is a part of Edelweiss group which was co- founded by Rashesh Shah in 1995. The group is into various services including Credit facilities, Investment & Advisory, Insurance, Wealth Management, Asset Management, Corporate Advisory etc. and it is operating various divisions through different subsidiaries. The competitors of Edelweiss are Centrum India and SMC Finance.

  • Established Year: 1995
  • Type: Part of conglomerate Edelweiss group
  • Business: Credit, Investment & Advisory, Insurance, Wealth Management, Asset Management, Corporate Advisory
  • Headquarters: Mumbai
  • Careers Link: https://www.edelweissfin.com/edelweisscareers

JM Financial Institutions Securities

JM Financial Services is a complete solution provider of all the financial services from Investment Banking to Wealth & Asset Management to Mortgage Lending & Distressed Credit to brokerage services. It is well known company for Private Equity Services as well and currently operates in midmarket business.

  • Established Year: 1998
  • Type: Financial Services group
  • Business: Investment Banking, Wealth Management, Mortgage Lending, Distressed Credit, Asset Management
  • Headquarters: Mumbai
  • Careers Link: https://www.jmfl.com/Careers

ICICI Securities Limited

ICICI Securities is a technology-based firm present across 77 cities of India and providing all the integrated services to its clients which includes Investment Banking, Institutional Broking, Retail Broking, Private Wealth Management, and Financial Product Distribution.

  • Established Year: 1995
  • Type: Technology-based firm and a part of ICICI Bank
  • Business: Investment Banking, Institutional Broking, Retail Broking, Private Wealth Management, and Financial Product Distribution
  • Headquarters: Mumbai
  • Careers Link: https://www.isecpwm.com/careers.html

IDBI Capital

IDBI Capital, a wholly-owned subsidiary of IDBI Bank, is a leading financial services company providing a complete package of services including Capital Markets, Investment Banking, Institutional Broking & Distribution, Retail Broking & Distribution, Fund Management, Private Wealth Management, and Research.

  • Established Year: 1993
  • Type: Wholly owned subsidiary of IDBI Bank
  • Business: Capital Markets, Investment Banking, Institutional Broking & Distribution, Retail Broking & Distribution, Fund Management, Private Wealth Management, and Research
  • Headquarters: Mumbai
  • Careers Link: https://idbicapital.com/careers.asp

O3 Capital Global Advisory Services

O3 Capital, edge to edge competitor of Avendus Capital, is a mid-market Investment Banking Company involved in the business which includes Corporate Finance, Investment Banking, and Alternate Asset Management. O3 capital has hired experienced professionals into the company and has opened offices in countries other than India as well.

  • Established Year: 1993
  • Type: Mid-Market Investment Bank
  • Business: Corporate Finance, Investment Banking, and Alternate Asset Management
  • Headquarters: Mumbai
  • Careers Email: careers@o3capital.com

Veda Corporate Advisors

Veda Corporate Advisors is a Chennai based boutique and mid-market Investment Bank. It is one of the largest Investment Banks of Chennai. And like other IBs, it also employs people with high professional acumen and serves clients in services like Mergers & Acquisitions, Structure Debt Finance and Private Equity.

  • Established Year: 2003
  • Type: Boutique Investment Banking Firm
  • Business: Mergers & Acquisitions, Structure Debt Finance, Private Equity
  • Headquarters: Chennai, Bengaluru
  • Careers Link: https://vedacorp.com/careers/

Spark Capital

Spark Capital is one of the leading mid-market Investment Banks of India which is located in Bengaluru. It is engaged in services including Investment Banking, Institutional Equities, Fixed Income Advisory and Wealth Advisory and it is very active in deals closures. Spark Capital always managed to maintain themselves to be on the league table.

  • Established Year: 2001
  • Type: Mid-Market Investment Banking Firm
  • Business: Investment Banking, Institutional Equities, Fixed Income Advisory and Wealth Advisory
  • Headquarters: Bengaluru
  • Careers Link: http://sparkcapital.in/careers/

Unitus Capital

Unitus Capital, founded in 2008, is India’s first established Impact based Investment Banking Company. It is engaged in services including Structure Debt Finance, Private Equity and Corporate Advisory for companies that are creating impact in the lives of the individual. For Example, Environment related companies, Food & Agriculture, Micro Financing, Fin-tech etc.

  • Established Year: 2008
  • Type: Impact based Investment Banking Firm
  • Business: Structure Debt Finance, Private Equity, Corporate Advisory
  • Headquarters: Bengaluru
  • Careers Email: info@unituscapital.com

MAPE Capital Advisors

MAPE is a leading Investment Bank of India engaged primarily into M & A and Private Equity. It also provides other services including Corporate Advisory, Debt, Real Estate Financing etc. MAPE is ranked as top 10 Investment Banks of India on the basis of their number of transactions.

  • Established Year: 2001
  • Type: Mid- Market Investment Banking Firm
  • Business: Mergers & Acquisitions, Private Equity, Corporate Advisory, Debt, Real Estate Financing
  • Headquarters: Bengaluru
  • Careers Link: http://www.mapegroup.com/careers.html

For securing an Investment Banking job at a good package, it is extremely important to crack the interview in an excellent manner and leave an extraordinary impression on the interviewer. Interview consists of case study or an assignment round and personal face to face discussion round.

And unlike other finance interviews, Investment Banking Interviews are more in depth and candidates find it difficult to crack the interview questions because of the following reasons:

  • Diversity of questions asked (Questions are asked from varied topics, basically from anywhere and everywhere from finance concept)
  • Intensity of the questions asked (One topic can be questioned in a detailed manner)

Here, in this article, I have created a list of questions which interviewers usually ask while hiring for an entry level profile of Investment Banking. There are multiple skills on which the interviewers test an individual and I will be covering majority of those skills in this article.

Major Questions asked in an interview of Investment Banking Job Profile

 1. Personal/ background Questions:

Primarily, any interview in Investment Banking starts with questions related to personal/ personal background questions in order to gauge the basic understanding of the candidate. These questions are asked to judge the attitude and personality of an individual towards life and his/ her career. This serves as a first step in the interview and defines the whole direction, structure and timing of an interview

These questions include:

  1. Brief on your education and experience?
  2. What are your strengths and weaknesses?
  3. What is your family background?
  4. What is unique about you?
  5. What do we consider you for this job?
  6. What are your best skills?
  7. Do you prefer to work independently or as a team?
  8. Rate yourself in the following skills – Excel Skills, Powerpoint Skills, PPT Skills, Team Building Skills, Analytical Skills, Communication Skills, Interpersonal Skills, Stress handling skills etc.

2. Career related Questions:

Another stream of questions which interviewers ask in Investment Banking interview is related to career and life goals. It determines the willingness of a candidate for the job and determination towards the field.

These questions include:

  1. What are your career goals? How do you see yourself after a span of 5 years or 10 years?
  2. Why are you choosing finance as a career option?
  3. Why are you looking to enter into Investment Banking Industry?
  4. Where do you see yourself in Investment Banking in future; whether in front end or back end? And, why?
  5. How this job/ profile will help you in achieving your career goals?
  6. Are you planning to pursue any further study, MBA, CFA etc. for your growth?
  7. How will you cope up with your studies and your job in future?
  8. Till how long, you are planning to stay with our company?

3. Finance related Questions:

This is the major part of the overall interview process and interviewer usually asks questions from any topic related to finance which may vary from ratios to cash flows and from company’s financial statement analysis to finance statements’ preparation.

These questions include:

  1. What is the structure of Statement of Profit & Loss, Balance Sheet and Cash Flows Statement?
  2. What do you mean by liquidity ratios, solvency ratios, profitability ratios?
  3. What is debt equity ratio, ROE, ROCE, ROA, Net Margin, EBITDA Margin, Assets Turnover, financial leverage etc.?
  4. What is Dupont Analysis, how is it helpful in determining ROE?
  5. What is the difference between net profit, cash flow from operating activities and cash profit?
  6. What all numbers will you consider while looking at a financial position of a company?
  7. As an equity investor, which are the most important ratios that you will calculate before making investment decisions?
  8. What is working capital and how will you calculate working capital days?
  9. What are the ways to projects revenue of a company?

4. Financial Modelling and Valuation related Questions:

Investment Bankers spend hundreds of hours on building financial models and conducting valuations of multiple businesses. Thus, Interviewers expect candidates to have some knowledge of financial models and valuations which they test either from an assignment or from direct interview questions.

Generally the questions include:

  1. How will you forecast revenue/ turnover of a company?
  2. What is the process of making financial models?
  3. What are the different types of financial models prepared by the Investment Bankers?
  4. Draw a projected Profit & Loss account of a company based on its past numbers.
  5. Explain the valuation techniques in detail.
  6. What is the difference between relative and absolute valuation?
  7. How do you compute valuations through trading and transaction comparable?
  8. Explain a rough DCF Valuation Model.
  9. How do you compute discounted cash flows?
  10. What are free cash flows?
  11. What is difference between cash flows at the end of the year and free cash flows?
  12. What is difference between FCFF and FCFE?
  13. What is the formula of FCFF and FCFE?
  14. Explain CAPM model in detail.
  15. What is WACC and why do you compute it?
  16. What will be the impact on WACC if there is high debt in the company?
  17. What do you mean by Beta? And, how do you calculate Beta?
  18. What is the difference between levered and unlevered Beta?
  19. What is terminal value?
  20. How will you compute growth rate (g) while calculating terminal value in cash flows?

5. Accounting related questions:

Investment Banking has its roots lying in finance and knowledge of basic accounting is required for finance. This is the primary reason why CAs are increasingly getting hired in IB profiles. Accounting questions serve as a basic assessment topic for any finance profile and hence it is must for any interviewer to judge the candidate knowledge in accounts domain as well.

These questions include:

  1. What are the sub heads of Non-Current Liabilities, Current Liabilities, Non-Current Assets and Current Assets?
  2. Why deferred tax assets and deferred tax liabilities come in balance sheet?
  3. What are the ways of calculating depreciation?
  4. What is the difference between EBIT and Operating Profit?
  5. What are the two ways to show fixed assets value in Balance sheet?
  6. Where all does debt (in which head) comes in balance sheet?
  7. Which accounting standards do we follow in India?
  8. Does GST appear in accounting books? If yes, then where?
  9. When do you capitalize any expense rather than putting it in profit & loss as an expense?
  10. What is shareholder’s equity? What is the difference between convertible equity and shareholder’s equity?
  11. What is the difference between basic and fully diluted shareholding pattern?

6. Resume Questions:

Another key question type is to ask questions directly from the resume objecting certain points. This usually happens in HR interview and they are restricted to asking questions on resume and personality.

These questions might include:

  1. Can you walk me through your resume?
  2. Specific questions on your educational background; For example; if you have done CFA or CA then the interviewer will ask curriculum related questions of CFA or CA
  3. Specific questions on your interests and hobbies
  4. Specific questions on certifications/ courses

7. Other Questions:

These questions include:

  1. Personality/ psychometric questions
  2. Behavioral questions
  3. Questions on the Interviewer’s company/ organization
  4. Package and salary related questions
  5. Questions for interviewer

Note: The questionnaire list is totally inclusive and not exhaustive

Investment Banking is one of the most trending term in the world of finance. Nowadays, many experienced professionals and graduates want to be an Investment Banker. It is one of the hardest, most lucrative and best paying jobs in the world. 

As more and more people are aspiring to be an Investment Banker and jobs are limited in this domain, recruiters are picky and choosy in hiring the best talent. It makes slightly tough for any fresher to enter into this high profile industry. 

Nonetheless, if you have analytical mind and you are very keen to make your career in Investment Banking then with the right education and right knowledge, you can successfully build your way in IB.

Education Criteria for entering into IB Industry 

1. MBA (Finance)

Investment Bankers prefer MBA Finance as top applicants’ profiles over other profiles. MBA Finance teaches students all the discipline as required in IB domain including finance, accounting, business acumen, marketing, financial analysis, management consulting and accounting knowledge.  Investment Banking is a mix of all the disciplines with majors in finance.

If a candidate is from top tier colleges (IIMs/ IITs, ISB, FMS, Xavier’s, IIFT etc.) then it becomes comparatively easier for them to enter into IB Industry.

2. CFA

If you’re a Chartered Financial Analyst (CFA) Charter, then you can easily make your way to IB industry. However, if you’re a CFA Level 3 candidate or CFA Level 2 candidate, then also you can enter into IB. CFAs are mostly preferred in industries like Investment Banking, Management Consulting, Hedge Funds, Mutual Funds, Brokerage firms, Insurance and Investment Firms etc.

3. CA

Another preferred education requirement is of a Chartered Accountant (CA). CAs are shifting to Investment Banking Industry on a large scale because of its paying structure and its popularity among the CA students. Another segment which enthusiasts CAs is to get into Financial Due Diligence team of Investment Banking.

4. Graduation

The bare minimum education requirement is to get a graduate degree in any discipline. But graduation will only make you enter into IB at an entry level (Intern). You can enter to Analyst or Junior Analyst level if you have graduated from a renowned institute.

One can immediately become an Investment Banker post-graduation but you need to have good experience, knowledge and further qualification to sustain in it.

Things to improve to enter into IB Industry 

1. Analytical Skills:

You need to improve your Analytical Skills along with other skills (including but not limited to communication, presentation, excel, interpersonal etc.). Analytical skill plays an integral role in IB Industry. 

Working on research and Financial Modelling requires a great analytical mind to adapt and learn these quickly.

2. Mathematical Skills:

This is one of the keys skills for entering or sustaining in IB Industry. If you’re unable to do basic math then IB is not the right industry for you. 

There are individuals who have thrived in this industry through excellent math’s knowledge. Investment Banking’s math is much more than making equations and solving it. 

3. Basic Finance Knowledge:

No Finance recruiter will hire you if you lack in basic finance knowledge i.e; knowledge of three basic statements (Profit & Loss Account, Balance Sheet and Cash Flow Statement), Analysis of the three Statements, Ratios, Securities, Present Values etc.

Finance knowledge is must to crack any interview for finance profile or related domains. An Investment Banker has to work on all the aspects of finance and it is expected from the candidates to be well versed with them.

4. Excel and PowerPoint Skills:

80% of the Investment Banking work constitute of working on Excel and PowerPoint presentations. You are required to be handy with the basic and advanced working of both the tools. 

You can take a video session or video course to learn working on Excel and PowerPoint which will make you job ready without making it a hindrance in your day to day work

5. Financial Modelling: (Plus Factor)

It is a plus for any recruiter if you have a sound knowledge in Financial Modelling. As Investment Bankers work day in and day out on models, they always haunt for people who can build models from scratch.

Ways to get into Investment Banking

1. Approach to the right personnel

The best way to get your application heard in Investment Banking is to find the right personnel and approach to him directly. While writing a job application, it is required to highlight all the key points in the mail body or cover letter to attract the right eyeballs. 

Usually, you should directly reach out to either Associates or Vice Presidents as they are influential in hiring process in Investment Banking industry other than the HRs.

2. Secure an Internship in Investment Banking

If you already secure an Investment Banking Internship experience, then it becomes easier for you to secure a job in the same Industry. It is comparatively effective to get an Internship position over getting an Analyst position directly. 

3. Be a part of Analyst programs

Most of the big-bracket Investment Banks (Goldman Sachs, JP Morgan, Morgan Stanley, Credit Suisse etc.) conduct Analysts programs in their company for budding and aspiring candidates to join them as an Analyst. You can be a part of either of the programs and showcase your interest in IB to the employer in front. 

4. Build Connections

Building connections and networking is an important part of the job. Connections with the Investment Bankers or with the corporates can help you land a good profile job in Investment Banking.

5. Pursue an Investment Banking Course  

There are several institutes which help candidates in learning the core of investment Banking. They help candidates from scratch of learning the nuances of IB till the time of securing a high profile job in the same industry.

Wall Street School is one of those institutes. It has designed a course specifically for budding students who are aspiring to enter into Investment Banking Industry.