Salary of an Investment Banker in India

Investment banking is regarded as one of the most prestigious and well-recognized career options. The high demands for these officials have raised the investment banker's salary in India.

Investment bankers are responsible for making a significant impact on the country's GDP. They help different companies upscaling their business and investments. It contributes to increasing the overall investment banker salary in India.

However, this salary depends from official to official. The salary of entry-level associates can vary from ₹7 lakhs to ₹8 lakhs per annum and goes up to ₹12 lakhs to ₹85 lakhs per annum. Are you still wondering whether to choose investment banking as your career? We have got a list of reasons for you.

Did you know?

India's annual average investment banker salary starts at ₹3 lakhs per annum.

Why is Investment Banking Salary in India High?

The primary services provided by an investment banker include:

• Raising financial capital by acting as the client agent of securities.
• Increasing the investments by distributing them in various assets.
• Forming a bridge between the bank and the company.

An investment banker has to work continuously to take care of all this. 

Investment banker salary in India is comparatively higher as compared to many other parts of the world. This is why young millennials desire to work in these fields and follow their ambitions. Investment bankers have a practical mindset and think out-of-the-box innovative ideas to deliver the purpose to their clients.

These bankers facilitate massive company takeovers and mergers to generate high-end commissions. All this work requires time, precision, and a lot of hard work. The globalization of new job opportunities has also widened the horizons for skilled investment bankers in India. Other factors like underlying stress, unstoppable working hours, and strict hierarchical standards are also responsible for such a high investment banker salary in India.

Also Read: What is Bank Manager Salary in India?

What is the Average Investment Banker Salary in India?

The average investment banker salary in India per month is around ₹ 80,000, which can vary based on the experience and training of a person. The average investment banker salary in India per month is also a combination of shared profits and bonuses. 

An investment banker is essential to control money flow in finance, banking, and other sectors. Investment bankers' jobs and opportunities differ, just like salaries in different cities of India.

Mumbai, Maharashtra

Mumbai is known as the financial capital of the country. Most banks have their headquarters in Mumbai, and hence the demand for investment bankers is higher here. 

Hyderabad

Hyderabad is the capital and the largest city in Telangana and is one of the highest contributors to the overall GDP of India. It is also the hub for many enterprises and startups.

Delhi

Delhi has the second-highest per capita income in India and is the second wealthiest city in India. It is the hub for major businesses in India and is the growing ladder for the overall GDP of the country. 

Chennai

The average investment banker salary in Chennai can vary from ₹ 3 lakhs to ₹ 5 lakhs per annum. 

Bengaluru

Bengaluru is the center of a booming IT sector and holds the headquarters for many companies. It is a great place to build a career in capital markets, equities, and derivatives.

What is the Role of an Investment Banker?

An investment banker has different roles, such as

• They help companies, organisations, and government agencies to raise capital for investments. 
• They examine an organisation's financial status and capital requirements and recommend suitable strategies for achieving goals.
• They act as an interlink in raising funds and looking for investment opportunities for their organisations.
• All the issuing and selling of stocks, selling bonds, or taking debts, is managed by the organisation itself. 
• They work on behalf of the company as a salesperson.
• All the financial planning and analysis, merger and acquisitions, analyses through cash flow, transaction comparisons, and leveraged buyouts.
• Act smartly and actively in problem-solving and interacting with multiple clients.
• An investment banker works from 50 hours a week to 80 hours a week, depending on their responsibilities.

List of Job Roles

Investment banker salary in India depends on the job profile of the employee. The three main roles carried out by an investment banker include investigating, researching, analysing, and underwriting. They do not just act as financial advisors but also help the clients raise capital for the firm by issuing debts through selling bonds to investors or selling equity shares. The job profiles of an investment banker are majorly divided into:-

Portfolio Manager

They work alongside the research analyst in helping the firms decide what to do with the assets. They are responsible for directing funds toward securities based on the insights received. The average salary of a portfolio manager banker in India is ₹ 10 lakhs per annum. 

Financial Planning and Analysis Manager

All the business forecasting, i.e., improvement strategies, analysis of cash flow, and hiring of large-scale organisations, is managed. The financial planning and analysis manager's salary in India is about ₹ 8 lakhs per annum. 

Corporate Development

They oversee mergers and acquisitions and help the companies to carry out divestitures and capital-raising operations in a smooth manner. They work closely to overlook the company's vision and mission and have an average base salary of ₹ 22 lakhs per annum.

Investment Banker Salary in Other Countries (UK & USA)

The average salary of an investment banker in India is in accordance with different economic activities in the country, but this salary is not constant for every other country. The financial viability and economic activities of a country are two major determinants of the salary of investment bankers.

The US is one of the most powerful and financially strong countries globally. Thus, investment bankers' work and their demand are usually high in the USA. The average base salary of the employees comes between ₹ 57 lakhs to ₹ 72 lakhs per annum. 

Experienced investment bankers get an even higher package than the freshers. Their monthly salary is far greater than the average salary of an investment banker in India. The average investment associate can make from ₹ 1,07,00,000 to ₹ 1,52,41,700 annually in the UK. They also get regular increments in their pay salary with extra bonuses. Investment banks are a great source to take good care of their staff members by ensuring they have steady growth. 

Also Read: Professions that Offer the Highest Salary Jobs in India

What does the future hold for Investment Bankers in India?

With the current economic trend in India, there is a steady upward growth in the investment banking sector. One contributor to this cause is digitalisation, which creates an ideal path for future investments when coupled with the upcoming technologies.

The future forecasts investment banking as the third-largest sector in the banking industry. Furthermore, the additional futuristic courses like artificial intelligence, big data, augmented reality, and virtual reality will revamp the financial sector. 

The investment banking sector of India will resonate more with customer expectations and financial inclusions. It will also aim to make the investments and businesses more profitable and less risky. Thus, there will be an expected increase in investment banker salaries in India per month. 

Conclusion

The requirements for becoming an investment banker can vary from company to company. To become an investment banker in India, you will need an MBA in finance. This will teach you the skills to conduct industry duties and solve business problems. It will also provide you with all the necessary skills required to carry out the industry work and handle the tough challenges.

In this article, we talked about the job requirements, portfolio, and working of an investment banker in India. The salary varies from different companies and demographically too.
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