Investment Banker Salaries in India in 2023 – For Beginners and Experienced Professionals
Investment banking is one of the most lucrative and rewarding career options in India. Over the years, the investment banker’s salary has steadily increased in the country. As a result, this line of work continues to attract both beginners and seasoned professionals.
In order to help finance professionals get a better understanding of the role of an investment banker and how much the investment banker’s salary is, we’ve put together this guide. If you’re looking to become an investment banker in India, continue reading.
The Role of an Investment Banker
Investment bankers typically handle the financial processes that the company is involved in or is planning to take. Some of the job duties of an investment banker include:
- Assessing the financial health of a company and devising strategies to help the organization reach its goals.
- Offering financial or investment advice to help the company raise capital.
- Coordinating any merger or acquisition that the company wishes to undertake.
- Ensuring continuous compliance with all financial regulatory institutions.
- Fixing the company’s stock price and providing advice on when to issue stocks or bonds.
- Managing and coordinating the IPO process and creating the required documentation.
Average Salary of an Investment Banker
Investment banking is a high-paying job role. These professionals are in demand because they act as financial advisors to companies, corporations, or, occasionally, even to the government.
The salary offered to investment bankers in India has risen exponentially in recent years as companies require their skills to attract financing and capital for their business activities.
The average investment banker salary in India ranges from Rs. 12 lakhs to Rs. 85 lakhs per year. However, a fresher in this domain can expect to get paid between Rs. 4 lakhs and Rs. 7 lakhs annually, depending upon the relevant skills and educational qualifications that the candidate has.
While an investment banker’s salary may be high, they are also expected to work in high-pressure environments for long hours. So, a successful career in investment banking requires not only financial aptitude but also the ability to dedicate considerable time and energy to meet the demands of the company.
Salary Based on Hierarchy
Investment banking typically comprises three main positions: Analyst, Associate, and Managing Director. The salaries paid will vary based on the position of the professional. The remuneration for each of these levels is as follows:
Analyst: This is an entry-level position in investment banking. The starting salary of an investment banker in India is approximately Rs. 8 lakhs and Rs.12 lakhs per annum. This range in the salary offered is due to differences in the size of the organization, their locations, and the candidate’s qualification. Keep in mind that investment banking starting salary in smaller financial institutions may be less than Rs. 8 lakhs per annum.
Associate: After around two to five years of industry experience, an investment banking analyst may become eligible for an associate’s job. In this role, investment bankers’ average salary may be in the range of Rs. 15 lakhs to Rs. 25 lakhs.
The pay will typically depend upon the candidate’s qualifications, experience, and the organisation’s standing in the corporate world. Associates working in highly specialised areas of investment banking, namely mergers, and acquisitions or private equity, draw much higher salaries owing to their specialised expertise, which is a requirement for such roles.
Vice President: Investment bankers who have served the organization for anywhere between five and ten years in the capacity of an Associate may be eligible to be promoted to the role of Vice President. The annual salary of a Vice President in this line of work varies between Rs. 40 and Rs. 70 lakhs.
Managing Director: At the highest level in investment banking, managing directors are usually offered Rs. 1 to 2 crores per annum. Thus, at this level, an investment banker’s salary per month can be as high as Rs. 16 lakhs. The exact pay will vary depending on the bank, its size, and its location. The managing director’s salary is normally influenced by the individual’s record of successful deals, their client profiles, and their income-generating capabilities. Typically, a person is only eligible to become a managing director after serving the company for over ten years.
Factors that Affect an Investment Banker’s Salary
There are various factors that can affect the average salary of investment bankers in India. Some of the factors are as follows:
- Skills: How much salary is offered depends directly on an investment banker’s skills and abilities. The key skills that are crucial for an investment banker include proficiency in Financial Analysis, Financial Modelling, and Mergers & Acquisitions. A successful investment banker is also adept in the usage of Microsoft Excel, and it has been shown that investment bankers with this edge command up to 24% higher salaries than those without.
- Experience: As with any other industry or enterprise, the experience level of a candidate affects the salary package they are offered. Having a good level of experience will straightaway mean an attractive starting salary at the organisation.
- The reputation and size of the company: The biggest and the best companies in this field will pay you very well, and you can also be assured of job security. The biggest players in India currently are IBM, Morgan Stanley, and Goldman Sachs. These companies will offer higher investment banking fresher salaries in India.
- Location: In larger cities like Mumbai, where there is a constant demand for investment bankers, the salary packages offered to these professionals are high. In comparison, if you were to work as an investment banker in a smaller city or town, you would be paid less.
Qualifications and Skills Required to Become an Investment Banker
Qualifications: A Bachelor’s degree in finance, business, economics, or a related subject is the minimum requirement for becoming an investment banker. Advanced degrees such as MBA (finance), Master’s in Finance, or CFA (Chartered Financial Analyst) can also help in securing a high-paying job in this line.
Analytical Skills: An investment banker must have strong analytical skills, given that the main component of the job is to analyse financial data and evaluate investment opportunities. An in-depth knowledge of financial statements, valuation methodologies, and market trends would also be a plus point.
Communication skills: Proficiency in both written and oral communication is essential in this field, as most of the work involves interaction with clients and negotiations.
Teamwork: Since the work involves constant interaction with colleagues at different levels, the ability to work with a team is a necessity. Leadership skills are necessary to manage teams and enhance client relationships.
The Bottom Line
The financial sector is ever-evolving. So, if you want to become an investment banker, it’s important that you stay informed about the latest opportunities in the market and focus on your skill development. By proactively seeking knowledge and upskilling yourself, you can succeed in the challenging world of investment banking.
The WallStreet School offers classroom-based and online courses in investment banking. The courses are delivered by full-time faculty members, who come with vast industry experience. With a comprehensive course curriculum, extensive learning materials, anytime, anywhere accessibility, personalised doubt clearance sessions, and great networking and placement opportunities, The WallStreet School can be your go-to solution to offer your career in investment banking the right start and boost.
