Investment banking is a highly coveted and high-paying career option in the Indian Finance industry. Investment bankers are generally very high in demand as they help businesses increase capital and carry out mergers and acquisitions. According to the data from the Bureau of Labor Statistics, the global demand for investment bankers is expected to rise by 4% by 2029. Not just the demand, but the investment banking profession also offers the highest pay in the market. Even freshers can earn a six-figure income as investment bankers.
The overall hype around the investment banking profession must make you wonder “How much does an Investment Banker make in India?” This article discusses all that you need to know about investment banking salaries and the factors affecting them.
What is the role of an investment banker?
An investment banker acts as a bridge between investors (who want to invest their money) and companies (who want to raise funds). The primary role of an investment banker is to assess the company’s financial situation and develop a viable and effective plan for achieving its financial goals. Based on the financial condition and the needs and requirements of the company, an investment banker can advise the company’s management to either issue stocks, issue bonds, or offer them an optimum combination of both to improve the company’s financial health.
An investment banker acts as a financial advisor for large corporations and creates a financial model for them to raise funds from the market after calculating various ratios and analyzing the financial health of the company. An investment banker also helps manage the investments of large corporations. Since investment bankers help companies make money, it makes it one of the most in-demand jobs.
Skills that an Investment Banker Must Have
An investment banker should have in-depth knowledge of financial management. In addition to the educational qualification, an investment banker should ideally excel at the following –
- Banking
- Managing Investments
- Financial Analysis
- Financial Modelling
- Microsoft Excel
- Mergers and Acquisitions
Average Salary of an Investment Banker in India
The demand and scope for investment bankers have increased in the past decade. The stressful nature of the job, requirement for advanced technical knowledge, and long working hours justify the fat paycheck offered to investment bankers.
The salary of an investment banker in India lies in the range of INR 2.46 lakhs per annum to INR 70 lakhs per annum. The average salary of an investment banker is around INR 9.61 lakh per annum.
Factors that affect the salary of an Investment Banker in India
While the salary of an investment banker in India is high, it is not fixed. Numerous factors that affect the salary of an investment banker in India. Listed below are the factors that will most likely affect your salary as an investment banker in India –
- Skills
Your skills and expertise play a very important role in determining the amount of salary you receive as an investment banker in India. Acquiring in-demand skills can help you beat the competition to secure a high-paying job and increase your worth in the market, and also enhance your job security. Microsoft Excel, financial modelling, and financial analysis are some of the most sought-after skills that you must learn as an investment banker. The investment bankers having expertise in Microsoft Excel earn 24% higher than the industry average.
- Years of Experience
Another important factor that directly influences your salary package in the investment industry is the years of experience that you possess. A person gains expertise with experience and therefore, more experience will help you land a higher pay. Entry-level investment bankers generally earn much less as compared to those with a certain amount of experience.
- Company
The company you are working for also plays an integral role in your pay package. If the company you are working for is highly reputed and established in the market, it will pay a higher salary and vice versa.
- Location
The city in which you are located can also affect your salary as an investment banker. This is due to the difference in cost of living as well as the difference in the demand for investment bankers in different cities. Mumbai tops the charts in the highest paying cities for investment bankers with an average salary of INR 18 lakh per annum.
Paymasters of the Indian Investment Banking Industry
As mentioned earlier, your salary as an investment banker depends on the company you are working for. This raises the question “Which are the paymasters in the Indian Investment Banking Industry?” Given below is the list of top companies hiring investment bankers.
- JP Morgan Chase
JP Morgan Chase is the largest bank across the globe based on its market capitalization. Headquartered in America, this company has offices globally and in India. The average annual salary offered by the company is INR 16,00,000.
- Morgan Stanley
With offices in more than 42 countries, Morgan Stanley is one of the most reputed financial services firms across the globe. The average annual salary of an investment banking analyst at Morgan Stanley is INR 16,00,000.
- Goldman Sachs
Goldman Sachs (1) is a US-based investment banking company that provides, investment management, asset management, brokerage, and securities services. The average annual salary of an investment banking analyst in Goldman Sachs, India is INR 17.27 lakhs.
Investment Banker Salary Based on Experience
The initial salary of an investment banker at the fresher level might seem low, but as mentioned earlier, it keeps increasing with experience. We have classified the salaries based on experience level to help you get an overview of the salary you can earn after gaining experience.
- Fresher
Your salary as an investment banking analyst at the fresher level might range between INR 2-5 lakhs per annum.
- Mid-Level
As you reach the middle of your career and gain an experience of 4-8 years, your salary will increase. The average annual salary of an investment banker with a few years of experience can earn anywhere between INR 8-15 lakhs per annum.
- Senior- Level
Once you reach the senior level and gain an industry experience of more than 10 years, you can get a very high salary depending on your skills and expertise. At the senior level, an investment banking professional can earn anywhere between INR 30-60 lakhs per annum.
While the salary of an investment banker looks very lucrative, it requires a lot of hard work, consistency, and patience to get there. Along with hard work, you also need proper guidance and industry-relevant education to become an investment banker. Platforms like Seekho Seekify can help you learn high-paying skills.
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