Investment Banking is a specialized division of a bank or financial institution offering finance-related services to individual clients or organizations. Capital raising, asset management, and acquisitions or mergers are some of the key responsibilities of an investment bank. This industry has been growing rapidly and hence there has been a considerable rise in the number of opportunities that are produced in this sector. If you are wondering what are the benefits of investment banking internships in Mumbai, this article will guide you with this.
Promising careers and a living with supreme perks or privileges attract students. Even experienced and well-established people are switching careers in the field of investment banking. However though one may fall for the perks available, there is no denying that it is a highly competitive industry and requires a lot of dedication and expertise.
One needs to remain focused and should be willing to work long hours. A lot of aspirants get a taste of the practical experience of work culture during the internship programs that they take up. Any intern in the field of investment banking gets a lot of exposure and opportunities to learn about the details of business processes.
Therefore it is very important to get absorbed by a reputed organization so that one can avail better opportunities to acquire skills. Investment banking internships in Mumbai help aspirants to learn better in comparison to any other city in the country because Mumbai is the financial capital of India and it is home to the largest stock exchange market in the country.
Hence beginners can target the best opportunities and investment banking internships in Mumbai. The stock market is flooded with investment banking internships here because the demand for training programs is huge. The students understand the value of working with bigger firms under the guidance of experts who occupy prestigious positions in the head offices of these investment companies.
Hence a constant push and pull for the demand and supply of opportunities in the area of investment banking has forced several private and governmental entities to create more opportunities in the banking sector because in the age of financial growth and capital stabilization, the role of savings and investments is considerably increasing and the customers understand the need to multiply their finances.
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Therefore investment banking industry has become a pool of opportunities with a core objective to engage in financial activities using the savings and investments of the clients. This has indeed paved the way for more vacancies in the industry. Even the interns and trainees benefit because of the variety of options available.
Let us refer to an example to understand the importance of investment banking internships. Sushila is my neighbor who recently moved to Mumbai for her internship program for 3 months with ICICI Securities Ltd. She shall learn about the procedures in investment banking and will expertise with practice.
Market research, calculations, and customer account handling are some of the major responsibilities to shoulder during her training. However, she claims that the investment banking internships in Mumbai have helped her become confident and independent and now she aspires to avail job opportunities in Mumbai city itself as she has started enjoying her work and the city’s charms.
Mumbai is an ambitious city that has room for all aspirants who come here in search of work. The internship programs help students understand the work ethics and nature of life in the capacity of a Mumbaikar. Students from across the nation and outside migrate to Mumbai in search of quality work.
Sushila has got a lot of exposure to stock market dealings and the internship program shall help her understand the details of the field. Investment banking internships in Mumbai are preferred by the aspirants because one not only encounters the experience of working in India’s largest stock market but it also gives them a taste of living in a mega city like Mumbai.
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Role Of Investment Banking
The process of providing financial assistance for capital raising and investing it for individual customers or corporates is called investment banking but with an increased number of commercial activity, the role of savings and investments has also expanded.
All such financial activities are becoming more complex in character with evolution and improvisation. Hence there was an urgent need to modify the operating structure of the industry. Therefore separate departments have been created to help banks function more effectively.
However even though these departments work closely in synchronization, each division has an individually important role to play in the entire banking process.
Some of the main functions of investment banks are :
- Risk management
- Investment management
- Merger and acquisition
- Merchant banking
- Structuring derivatives
Divisions of Investment Banks:
Many investment banking companies in India maintain prime brokerage and hence asset management department is set up in the system for convenience. The departmental wing of asset management is closely linked with investment research. Therefore a division of banking operations into three categories was introduced in order to maintain a systematic and organizational approach.
The three categories of Investment banking companies are:
Bulge Bracket – This section of the bank looks after the underwriting part where they deal with the issuance of securities on behalf of the customers. Firms that look after international transactions but also have a domestic presence fall under the Bulge Bracket. Morgan Stanley, Bank of America, and Goldman Sachs are a few examples of firms here.
Middle Market – This section deals with the concept of lending and investment-related services. These firms generally work on deals on the regional level.
Boutique market – Finally the boutique market department looks after the personalized management of services for the customers. Each customer has a personal investment banker to advise and enact on behalf of the clients. This kind of bank is then further divided into two sub-categories of regional and elite boutique banks.
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Some of the leading investment banking companies in India are :
- Axis Bank Ltd.
- HDFC Bank Ltd.
- ICICI Securities Ltd.
- IDBI Capital Market Services Ltd.
- Edelweiss Financial Services Ltd.
Who is an Investment Banker?
A highly skilled and trained official who can cater to a variety of financial services for businesses, government, and investors is known as an investment banker. They help their clients obtain loans, issue stocks and bonds, set security prices, raise stock capital, allocate resources and mergers, and most importantly manage investments on behalf of the client.
These officials act as the intermediary between public and private companies and the investors. However, an aspirant who is yet to start his career can take up an internship program to understand the basics of the industry.
How Does an Investment Banking Internship Help?
Investment Bank is a complex section of the banking industry and needs interpersonal and professional skills in order to fight competition and then survive. Some of the personal skills that help professionals in the area of investment banking are effective communication skills, relationship-building abilities, and analytical skills.
One must be dedicated to being able to push boundaries to achieve goals. Therefore an internship is an opportunity that not only helps an intern in the development of personal behavior but also gets exposure to real-life experiences and situations at work.
It allows one to learn about the work environment of investment banks where they can learn to handle projects and manage calculations and then master the art of relationship building.
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The advantages of Enrollment in Investment Banking Internships in Mumbai Are:
- Interest in the sector and financial affairs
- Perks and benefits offered.
- An improved living standard.
- Receiving the learnings and practical knowledge during training programs
- Helps in the development of one’s skills.
- Expert Guidance
It can be clearly seen that the area of investment banking involves a lot of functions to be performed and there is a lot of responsibility on the officers.
Hence this calls for an urgent need to employ more officials who can work effectively and efficiently in this area because the new generation is much more aware of the financial affairs and they prefer to invest their capital resources in the form of stocks and debentures in order to make profits out of them.
Hence there is a need for the creation of more job vacancies in the sector to meet the scale of development. There has been a rise in the number of internships or jobs on a national level.
However, the capital cities produce a considerably high rise in this respect, and Mumbai being the financial capital of the country generates the maximum number of employment opportunities in the banking sector.
Alone Mumbai City has witnessed the establishment of three hundred and sixty-six investment banks until 2023. This also signifies that with the huge demand in the section, hundreds of aspiring students have shifted their focus toward this field so that they can establish careers here.
Hence today we also see many students taking up training and internship programs in the area of investment banking. So, it is clear that there is a huge scope that investment banking internships in Mumbai offer. The progression can be noticed among the students of other countries also.
Therefore a large number of foreigners emigrate to Mumbai city in search of opportunities. Similarly, Indian residents are also moving abroad in search of better job opportunities since bigger and stronger economies such as the U.S.A. produce a higher number of opportunities for young aspirants in the field of investment banking.
U.S.A. has become the largest producer of M.B.A. students. Investment banking is a trending career option even in European countries and certain parts of Asia. The banking sector is wildly growing and the territorial boundaries are becoming blurred as one does not shy away from migrating to a different territory in order to chase an opportunity.
This has become possible because one is well aware of the security and the perks that they can enjoy after education and employment in the area of investment banking. Mumbai also has evolved into a territory with a population from all around the globe and bears mixed cultural growth among the masses.
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How To Get Into the Field of Investment Banking?
Freshers and interns can approach the recruitment teams of the major investment banking companies or one can enroll in the M.B.A program from any reputed university in India or abroad in order to pursue education in the sector of investment banking.
Later through training or internship programs or with the help of placement cells of the institute, students can get employment in an investment banking firm.
A lot of aspirants who are not freshers and are considering a career switch can even keep following the information that the companies share on their websites. They can even apply from other job portals. In such a circumstance one’s experience shall count but they must undergo a training program in order to acquire skills for the job role.
How Long Does It Take to Become an Investment Banker in India?
The job of an investment banker involves a lot of responsibility and hence one needs to cross many hurdles to finally become an investment banker in India. It may take around 7 years or more to become an investment banker in India.
After completing your master’s degree program, it will take you another 3 to 6 years to complete a doctoral degree in the field of investment banking but earning credentials might take anything from 6 months to 4 years depending upon the individual capabilities and skills of the banker.
Work Culture in Investment Banks in India
- The culture in investment banking in India is very different and it could be time-consuming for new employees to adapt to the working environment. There is an imbalance between the daily routine of work and the risk-taking abilities of the officers. The working hours are also high. One may need to work for 13 to 16 hours per day.
- An employee has to constantly juggle between opportunities and insecurities as the industry works at a very fast pace. As a result investment bankers frequently switch jobs because of high competition.
Investment Banking Hierarchy in India :
An investment banker’s career progresses predictably in India The hierarchy of an investment banking company is discussed as follows :
A fresher has to serve as an analyst at the bottom level of the hierarchy. The job role includes mostly administration work.
Investment Banker Associates :
After a minimum of three years, individuals with exceptional achievement are promoted to the position of investment banker associate. The function of an associate is the same as that of an analyst. However, he acts as a link between the other levels of the hierarchy.
Vice President :
A VP is responsible for closely monitoring the daily businesses and accounts. He shall have to face clients on behalf of the company. They prepare presentations and legal agreements as well as provide memorandums, proposals, and engagement letter term sheets, and they cultivate client connections.
Executive Director :
At the highest level in investment banking structure, a Senior Vice President / Executive Director undertakes the main responsibility of a Senior V.P is to incorporate changes in the businesses that shall help in overall business growth.
Managing Director :
Becoming a managing director takes a long time and a lot of dedication. They have the most responsibilities and are in charge of the bank’s profitability. In rare circumstances, he participates actively in the transaction but he appoints an efficient VP and senior VP to help with daily functioning.
Thus the area of investment banking is evolving very fast and attractive opportunities influence students. There is growth with every year. Investment banking internships in Mumbai offer the most suitable example explaining that the students get a lot of exposure to high-profile transactions or trading activities during their training programs.
The job is challenging and one must carefully decide before making a selection for the path of career in this sector but with experience and expertise, one can succeed and make a good living.
1. Why one must opt for Investment banking internships in Mumbai?
History tells that masses have been migrating to Mumbai city in search of work. However, with the increasing role of commercial activities, most people are aspiring to enter the banking, finance, or insurance sectors because these sections generate maximum opportunities and allow one to earn decently in comparison to a lot of major cities since the average wage range is higher in Mumbai. On the other hand, the headquarters of most of the companies are situated in Mumbai.
It is also the financial capital of India and hence as a result maximum jobs and training programs are generated here. Even the number of investment banking internships in Mumbai is higher due to the presence of the stock market. These factors affect the number of openings that pave the way into the market. Therefore it not only becomes easy to search for a good opportunity in Mumbai but one can choose from all the options available and learn from the best firms in the industry. Hence it is a wise decision to enroll in investment banking internships in Mumbai.
2. What is the scope of investment banking internships in Mumbai?
All the major giants have headquarters located in Mumbai and any intern who is training here may encounter the experience of meeting an expert. This in return is an opportunity for the trainee to learn from them. Interns are expected to best training programs and can explore the area of their interest under expert guidance in comparison to any other city in India.
3. How can I apply for investment banking internships in Mumbai?
An aspirant needs to keep following the websites of investment banking organizations on a regular basis to keep track of new openings and opportunities that may surface. One can easily locate the internship or jobs section on the websites and either directly apply on the links or may approach the recruitment team for the same.
4. Are investment banking internships in Mumbai paid?
Organizations may or may not offer paid internships depending on the internal policies of the company. Even in a non-paid internship, one can always learn and gain experience from the training program. A lot of firms absorb the interns later after completion of the internship programs or even during the PPO. However, most of the investment banking internships in Mumbai are paid.
5. What is the average salary scale in the field of the investment banking industry?
The average salary for Investment Bankers in India is around 1.8 Lakhs per year for beginners. However, the growth depends on individual talent and merit. The scope is infinite in the sector of investment banking and no prior experience is required to start up a career in the capacity of an investment banker. One can enroll as an intern and train. The on-the-job training and internships are very helpful in such a scenario.