The Indian Investment Banking market share in 2020 was $3.3 trillion with Mumbai commanding a 57.44% market share in the Investment Banking Industry. Investment Banking jobs at present enjoy a cushy no. 3 position in the world’s top 10 highest-paying job titles. With a 57.44% share in the investment banking industry in India, and the hub for corporate headquarters of all big banks, financial companies, and industries, Investment Banking Jobs in Mumbai are the most lucrative options for job seekers. Here is a brief insight into Investment Banking and its scope in Mumbai.
Overview of the History and Investment Banking Industry
Investment Banking in India took root in the 1970s when the State Bank of India first formed the Bureau of Merchant Banking. The first banking body to offer merchant banking services in India was ICICI. By the 1980s there were 30 more banks that had joined the bureau and were offering their services.
After 1500 banks registered for membership in the State Exchange Board of India, the Association of Investment Bankers in India was formed to ensure that India’s legal and ethical practices were followed. As of today, 2023 there are in total 839 Investment Banking firms all across India.
Mumbai alone boasts being home to 366 top investment firms out of this list. To add to the lists of further recognition, out of the top 55 global Investment Firms in India, Mumbai alone is the headquarters of 20 out of this list.
Skills and Qualifications Required for Investment Banking
For securing any Investment Banking Jobs in Mumbai let’s take a first glance at the qualifications which most of investment banking institutions demand:
- Bachelor of Commerce (Honours)
- Bachelor of Arts in Finance or Economics
- Bachelor of Business Administration in Finance
- Bachelor of Commerce in Investment Management
- Master of Science in Finance
- Master in Business Administration in Finance Management
- Master in Business Admin in Banking and Finance
- Post Graduate Diploma in Investment Banking
- Certification Courses in Investment Banking
- Chartered Financial Analyst ( CFA)
- Chartered Accountant (CA)
An individual can gain all the theoretical and on-paper knowledge about investment banking, but there are certain aspects of the individual personality, that an investment bank/institution looks for over and above a degree while offering Investment Banking Jobs in Mumbai and elsewhere across the globe. These personality hard skills are as follows:
- Analytical Skills –
- Good research skills
- Visualization of Data
- Quick critical thinking abilities
- Fast-paced and accurate problem-solving acumen
- Attention to details
- Calculative Skills – Good mathematical skills and abilities to crunch numbers in a fast-paced manner.
- IT Skills – Basic computer skills like working with
- Personality Skills –
- Good orator as communication plays a major role
- Efficient and quick problem-solving skills
- A good negotiator
- Good presentation and persuasion skills
- Great at managing people and correspondence
- Financial Skills –
- Well-versed in Modelling
- Sharp data analytical skills
- Accounting knowledge, like how to maintain a Balance Sheet and knowledge of Profit and Loss Statement
- Asset Management
- Project Management
- Equity management
- In-depth knowledge of the Money Markets
- In-depth knowledge of all the regulations, and laws
- Business Management
- Commercial acumen
Structure of Investment Banking in India
Before you start applying for any course in Investment Banking or even start applying for any Investment Banking Jobs in Mumbai especially, let’s first take a deeper look at the way the Investment Banking Industry is classified. In a typical Investment Banking Institution the following departments are a standard:
Revenue Generating Departments: This includes all the frontline departments which are actively involved in revenue generation, client interactions, sales, and research. This is divided into two major departments :
- Investment Banking Division – This entire department deals specifically with revenue generation for the company or the clients. This is further classified into the following two categories :
- Product Specific Category: The employees in this section command expertise in the following products :
- Equity Capital Markets
- Mergers and Acquisitions
- Debt Capital Markets
- Leveraged Finance
- Industry Specific – The job seeker in this role commands expertise in all the financials of a particular industry, which are as follows :
- Telecom and Media
- Consumer Retail
- Oil & Gas
- Power and Utilities
- Public Finance
- Financial Institutions and Sponsors
- Metals and Mining
- Real Estate
These are a few examples quoted in this article, although the classification is vast and depends on the interest of the candidate.
- Sales and Trading – As the heading states, this department handles buying and selling, stocks, bonds, equities, and options for their clients.
- Research – The research teams conduct in-depth research on the financials, potential, and assessment of the risk factors of the companies in question. Based on the reports, data-driven advice is imparted to the customers for buying, selling, or acquisitions.
- Risk Management Department – This department has minimal to no client interaction and acts as a support group to the sales department. They include the treasury department, legal counseling department, and counterparty credit departments.
- Back Office Support Department – To ensure all rules and regulations are being followed properly by all the departments, Compliance, IT department, and Accounting department act as the support staff.
Classification of Investment Banks and Institutions in India
Investment Banks and Institutions are broadly classified into 4 categories, depending on their client focus, size, area of expertise, and business dealings. Here is a look at the categories and the top institutions in Mumbai specifically :
- Tier One Investment Banks – This category includes all the bigger banks and institutions which deal with different corporate finance sectors. They are also known as Bulge Bracket Banks and the following are present in Mumbai –
- JP Morgan
- Bank of America Securities India Limited
- Goldman Sachs
- Morgan StanelyCitigroup Global Markets India Pvt. Ltd.
- Barclays Risk Solution Group
- Credit Suisse
- Deutsche Bank India
- State Bank of India
- Axis Bank
- HDFC Bank
- ICICI Bank
- Central Bank of India
- Kotak Mahindra
- JM Financial Ltd
- IDFC First Bank
- Avendus Capital
- Edelweiss Financial Services
- Tier II Investment Banks and Institutions – The banks and institutions under Tier II are also known as Elite Boutique Banks. They deal in specific corporate finance sectors and handle high net-worth corporates and individuals and it is not necessary they have a very huge global outreach, although their revenue shares the same position as some of the well-known Tier I banks. The following Boutique Banks are headquartered in Mumbai :
- CentreView partners
- Lazard India Pvt. Ltd
- Greenhill & Co
- Perella Weinberg Partners
- Evercore Inc.
- Quatalyst partners
- Rothschild & Co
- Moelis & Company
- PJT partners
- Nomura Holdings
- Compaxed Investment Banking Firm
- Ishwarshakti Holdings and Traders Ltd.
- Terker Capital
- Solutions Investment Banking Firm
- Singhi Advisors Investment Banking Boutique Firm
- Middle Market Investment Banks in Mumbai- The Middle Market Investment Banks and Firms have a plethora of corporate finance product expertise and a global presence, but their business volume is much less than the above two types. They do not deal in very big corporate giants but have numerous mid and small-sized companies under their wings. The following Mid Market Banks are present in Mumbai :
- William Blair & Co
- Houlihan Lokey
- Lincoln International
- Harris William & Co.
- Raymond James
- KPMG Corporate Finance
- Brown Gibbons Lang & Co.
- Avendus Capital
- Axis Capital Ltd.
- Jm Financial Institutions Securities
- ICICI Securities Ltd.
- IDBI Capital
- O3 Capital Global Advisory Services
- Veda Corporate Advisors
- Spark Capital
- Unitus Capital
Types of Investment Banking Jobs in Mumbai
Investment Banking has a plethora of positions one can apply for, depending on the job responsibilities one has an inclination towards and which best suits the qualification and interest in. Here are a few positions that an individual comes across while applying for Investment Banking Jobs in Mumbai :
1. Financial Associates –
This is an entry-level job. The primary responsibility of a Financial Analyst is to be the representative of the institution for the client. He/she has to meet clients and help them in making choices for investing in different financial products, building a portfolio, and investing in different funds. Deposits and loan services have to be their strong points. Communication and presentation should also be strong points for the candidate.
2. Financial Planner –
Another entry-level opportunity in Investment Banking Jobs in Mumbai is the role of a Financial Planner, which is similar to a Financial Associate, except that here he/she plans the financial calendar for a client. The calendar includes planning investments, managing deposits, budgeting, and managing risks by planning intelligently.
They have to carry out the following responsibilities :
- They help in the long-term planning of a client in terms of investments, planning, and budgeting.
- They help in tax planning, property investments, retirement schemes, and investing in shares.
- They impart money management services which help in financial guidance, especially for retired individuals and individuals who have just started working.
- They help in setting financial goals for clients.
- They help in tax planning, pension fund allocation, mortgages, and any other related financial activities.
- They help in assessing and mitigating risks for clients.
3. Financial Advisor –
A Financial Advisor job is a front-line opportunity, that generally freshers get while applying for Investment Banking Jobs in Mumbai. They have the following roles to execute:
- Help clients fix their investment goals pertaining to long-term and short-term investments.
- Manage a client’s taxes and insurance investments to help in achieving the client’s financial goals.
- They help in budgeting, investments, future planning, and savings to be prepared for any calamities or unforeseen circumstances that can take place.
4. Financial Analysts –
This role counts amongst the mid-management opportunities available while applying for Investment Banking Jobs in Mumbai and requires experience and sharp acumen. The following are the key roles they have to play:
- They gather Industry, Economic, and Finacial fiscal data, evaluate it, and predict the performance of the investments made by the clients.
- Based on their research and predictions, they make recommendations for investments and disinvestments in financial products.
- They have to predict trends and patterns from the data gathered either for a company or for an individual client.
- They are basically classified under two heads, Buy Side Analysts and Sell-Side Analysts. As can be comprehended from the title one analyses which stock, bonds, or equities to buy and another which products to sell.
5. Equity Analysts –
An Equity Analyst is a mid-level job opportunity. One can also start in an organization as a Research Analyst which is the position offered to freshers while applying for Analyst Investment Banking Jobs in Mumba The following roles can be expected with the position:
- They either specialize in a group of companies or products and do an in-depth study of them.
- They conduct research and prepare financial reports of stocks and bonds.
- With the help of Finacial Modeling, they prepare reports and predict trends and patterns in the data.
- Since they have sharp Statistical and Mathematical acumen they prepare reports to be presented to the clients or the company itself.
- They have to directly interact with the firm managers to impart the research data, which is used to help the investors with the decision to either buy or sell the equities.
6. Investment Banking Analysts –
This is an entry-level opportunity for any individual looking to step into the hardcore domain of Investment Banking. The following key responsibilities one has to carry out as an Analyst :
- Research the economic trends and forecasts in the financial market.
- Analysis of financial data which in turn helps the managers as a support for the generation of capital for the firm.
- Assessment of equities and stocks and valuing them.
- Conducting research to identify potential areas for investments
- Aid in preparing pitchbooks for senior staff for presentation to investors and clients.
- In-depth research on all the financial and legal documents related to the firm.
For banking aspirants, this opportunity of applying for Investment Banking Jobs in Mumbai, the growth opportunity in this field is comparatively high.
7. Private Equity Associate –
In this role the candidate has to be exceptionally good in people management skills, communication, and good organization The following key job responsibilities are a must for aspirants applying in this area of Investment Banking Jobs in Mumbai :
- A thorough study of the equities and debts market.
- Aiding clients in forming and maintaining an investment structure and strategy.
- Advising clients about new potential investment opportunities, thereby helping them in decision-making in purchasing the appropriate bonds and stocks.
- Maintaining multiple accounts and aiding them with regular analysis and presentation of their financials.
- Dealing with High Networth Individuals and clients, and established firms.
8. Mergers and Acquisitions Specialist –
In the present business scenario, a major number of companies are looking to expand by taking over medium and small-sized companies not only in India but also globally. For this position, the candidate has to be exceptionally excellent not only in business negotiations but also an expert in accounts and company laws. The following responsibilities are attached to this role :
- Market research of potential companies for acquisitions, which includes their present and past financial data.
- Risk assessments and potential pitfall assessment in the merger deal.
- Structuring the deal for acquisitions which includes company financial liabilities, debts, assets, workforce decisions, and the entire legal documentation.
9. Underwriting –
This is one of the most important positions in Investment Banks and is highly sought after amongst all of the Investment Banking Jobs in Mumbai. Since the position plays a critical role in the company, he is a look at the job responsibilities:
- Conduct thorough research of the financial scenario, and the company’s financial status, before planning to launch the Initial Public Offerings of the company in the market.
- Evaluate and asses the client’s needs and accordingly price the IPOs.
- Be responsible for all the legal documentation of the IPO.
- Determine the client’s market needs and accordingly allocate the Company IPO’s
- Assist Government, Corporates, and institutions in raising capital.
10. Venture Capitalist –
This role is most in demand and is amongst the top-paid jobs in overall Investment Banking Jobs in Mumbai. There are mainly 3 different roles under the guise of Venture Capitalist, namely Venture Capital Associate, Venture Capital Analyst, and Venture Capital Accountant and Auditor. The following are the job responsibility that has to be formed in this role:
- Market research to identify potential opportunities for investment and acquisitions.
- In-depth research of the financial condition of the target companies.
- Building a portfolio of the company for the employer company or the investor company.
- Negotiating terms for acquisitions and handling the legal and document part of the acquisition.
FAQs: Investment Banking Jobs in Mumbai
What is the average salary expected for freshers in Investment Banking and what is the highest salary received?
The average salary for a graduate stepping into the Investment Banking sector starts from rs.2.46lacs/annum. A postgraduate student from a recognized business school can be offered a salary package ranging between Rs.4lacs/annum to Rs. 12 lacs/annum as per Glassdoor. But the salary package changes as per the location also. The Salary package in Tier II cities is definitely lesser as compared to Tier I cities. Also, skills acquired by the student play a major role in salary negotiation. Depending upon experience and track record, the highest salary package can go beyond Rs.85 lacs/annum in India.
What are the advantages and disadvantages of working with Tier I or Bulge Bracket Investment Banks?
For a fresher, getting selected for any Investment Banking Jobs in Mumbai in Bulge Bracket Investment Banks is easy, as there are ample job opportunities available. Being associated with a big brand name allows for working with globally recognized deals, a stronger alumni network, and better financial emoluments.
On the other hand, the disadvantage of working with Big Investment Banks is that client interaction is quite limited for freshers. The competition for growth is intense as the number of people vying for higher positions is more. A fresher has to work very hard and for long hours to stand out and be recognized.
Should a fresher start their career with a Mid Market Bank?
For students looking to start at a smaller level and understand the processes and market better, a Middle-Level Bank is an excellent choice. The clients are more local and client interaction is more compared to a Bulge Bracket Bank. The opportunity to understand the processes at a slower pace and the option of handling smaller deals is a big advantage here. The scope of error and rectification is higher and since the staff size is smaller, the opportunity to work with the senior more experienced staff is very high as compared to other banks. The pay package is not very high but learning opportunities are very high.
For a long-term career in Investment Banking should I choose a Bulge Bracket Bank or a Boutique Bank?
Boutique Banks are known to deal with HNI customers and deals which are of high value. There may not be as many deals in numbers as compared to a Bulge Bank, but a smaller task force means, clients dealing by all the required employees. There are ample opportunities to get a practical experience of the technicalities involved in closing deals, real-time customer experience, and a better network.
In today’s fast-paced scenario, customers are inundated with the decision to make intelligent investments to not only pave the way for a secure retired life but also for their families. With the plethora of options available one has to either, constantly be aware of the financial markets or depend upon external help which not only keeps a constant eye on the financial markets but also takes data-derived right decisions for them. The same scenario resounds in the business world. Companies are not only limited to the land of origin but have started spreading their reach globally.
To aid this development there is a constant need for research, risk analysis, and data-backed decision-making. Here, are steps for investment bankers to make this process smoother and faster for the clients. Investment Banking is a sector that has seen slow but steady growth. It is a challenging and demanding profession but also the end goals are highly lucrative not only in terms of monetary benefits but also local and global recognition. Thus, if you have a keen eye for analytics, deal with numbers, enjoy researching, and have excellent interpersonal skills, this is the right profession for you to step into.