India's Investment Bankers: A Comprehensive Overview Of Their Numbers

India's investment banking sector has experienced significant growth in recent decades, with global giants like J.P. Morgan, Goldman Sachs, and Morgan Stanley establishing a strong presence in the country. The industry plays a crucial role in financing projects, managing mergers and acquisitions, and supporting capital market operations. While there are over 300 investment banks operating in India, the number of true front-office analyst roles is limited, with only around 100 positions available annually across the country. This makes breaking into the industry highly competitive, with most roles concentrated in major financial centres like Mumbai, Delhi, Bangalore and Hyderabad.

The history of investment banking in India

In the 1970s, the State Bank of India entered the investment banking business by creating the Bureau of Merchant Banking, and ICICI Securities became the first Indian financial institution to offer merchant banking services. By 1980, the number of merchant banks in India had risen to more than 30, and the industry continued to grow with the rapid expansion of commercial banks and other financial institutions.

The Association of Investment Bankers of India (AIBI) was formed in the 1990s to regulate and govern the increasing number of banks and ensure members complied with banking regulations. During this decade, over 1,500 merchant bankers registered with the Securities and Exchange Board of India (SEBI), marking a significant expansion of the merchant banking sector in India.

Today, investment banking in India involves financial transactions for individuals, companies, and governments, offering services such as corporate restructuring, asset management, sales and trading, and assistance with initial public offerings (IPOs). Despite challenges, the future of investment banking in India shows potential for growth and job opportunities.

International investment banks with a presence in India

India's investment banking sector has experienced significant growth in recent decades, attracting many international investment banks. These banks play a crucial role in financing projects, managing mergers and acquisitions, and supporting capital market operations.

J.P. Morgan

J.P. Morgan has established itself in India with multiple offices across the country, including Mumbai. Known for its expertise in M&A, capital markets, and wealth management services, it has become a leading international investment bank in the country.

Goldman Sachs

Goldman Sachs, a global powerhouse, provides a comprehensive range of investment banking services such as securities trading, asset management, and financial advisory. The firm serves India's leading companies and has a strong presence in Mumbai, Bangalore, and Hyderabad.

Morgan Stanley

With offices in Mumbai and Bangalore, Morgan Stanley offers a wide range of financial services to clients worldwide, including consultation, fundraising, fund management, research, and investment banking. The firm maintains a strong focus on M&A, capital raising, and financial restructuring.

Bank of America Merrill Lynch

Bank of America Merrill Lynch, now known as Bofa Securities, has a strong presence in India, with offices in Mumbai, Delhi, Chennai, and Bangalore. The bank offers various services, including fund-raising, M&A advisory, securities research, and trade facilities.

Barclays

Barclays, a British multinational bank, provides investment banking services and operates in several Indian cities, including Mumbai, Bangalore, Delhi, Chennai, and Kolkata. Their offerings include capital raising, M&A, and wealth management.

Credit Suisse

Credit Suisse, a Swiss-based global investment bank and financial services company, has established a solid presence in India, with offices in Mumbai, Pune, and Gurgaon. They specialize in investment banking, asset management, and private banking services.

Deutsche Bank

Deutsche Bank, a German multinational investment bank, is a global leader in investment banking with a significant presence in India, particularly in Mumbai. They offer a range of services, including mergers and acquisitions, capital markets, and risk management.

BNP Paribas

BNP Paribas, a French international banking group and one of the world's ten largest banks, has a strong presence in India, with offices in Mumbai and Kolkata. They provide investment banking solutions and other global financial services to corporates and clients worldwide.

UBS

UBS, a Swiss multinational bank, offers a comprehensive range of investment banking services in India, including mergers and acquisitions, capital market operations, and wealth management. They have a presence in Mumbai and Pune.

Société Générale

Société Générale, a French multinational bank, has a solid presence in India, serving clients with a range of investment banking services such as corporate finance, capital markets, and structured finance.

Leading Indian investment banks

India's investment banking sector has experienced significant growth over the past few decades, with global giants like JP Morgan, Goldman Sachs, and Morgan Stanley establishing a strong presence in the country. Here is an overview of some of the leading Indian investment banks:

Avendus Capital

Avendus Capital is a well-known investment bank established in 1999 with headquarters in Mumbai. The bank focuses on boutique businesses, performing due diligence, private equity, and investment banking services. Avendus Capital is considered one of the top domestic investment banks in India, known for its expertise in cross-border M&A and private equity advisory.

Axis Capital Limited (ACL)

Axis Capital is a leading domestic investment bank and a subsidiary of Axis Bank. It specialises in equity capital markets and boutique and mid-market services. The bank has a strong presence in India and achieved a total income of Rs. 47,568.71 lakh in 2023.

Edelweiss Financial Services

Edelweiss Financial Services is a diversified financial services company and part of the Edelweiss Group. It offers a range of services, including debt capital transactions, advisory insurance, asset management, and credit facilities. The company was founded by Rashesh Shah and is headquartered in Mumbai.

JM Financial Institutions Securities

JM Financial is a prominent domestic investment bank with a comprehensive range of services, including mortgage lending, wealth management, brokerage services, and distressed credit. They are well-known for their private equity services, catering to corporations, high-net-worth individuals, and retail investors. JM Financial has a strong presence in India and is headquartered in Mumbai.

ICICI Securities Limited

ICICI Securities is a subsidiary of ICICI Bank and is one of the leading domestic investment banks in India. It offers integrated securities services such as investment banking, financial product distribution, and private wealth management. The company was founded in 1995 and is headquartered in Mumbai.

IDBI Bank Limited

IDBI Bank is a subsidiary of IDBI Bank and is engaged in capital markets, investment banking, private wealth management, and research. The bank is located in the heart of Mumbai and treats its employees as brand ambassadors. It is considered one of the top investment banks in India.

O3 Capital Global Advisory Services

O3 Capital is a mid-market investment bank headquartered in Mumbai. It primarily focuses on corporate finance and alternate asset management. The company was established in 1993 and has experienced professionals who have developed innovative strategies.

Veda Corporate Advisors

Veda Corporate Advisors is one of the largest investment banks in South India, headquartered in Chennai and Bangalore. It offers a range of services, including mergers and acquisitions, private equity, and structured debt finance. Veda Corporate Advisors is a boutique investment banking firm and is considered a leading market investment bank in India.

Unitus Capital

Unitus Capital is a boutique investment bank with a strong presence in India. It focuses on social sector projects and provides capital raising, financial advisory, and impact investing services. The bank is committed to creating a positive impact and has established itself as a leading investment bank in the country.

Goldman Sachs

Goldman Sachs is a global powerhouse in investment banking, offering a full range of services such as securities trading, asset management, and financial advisory. With headquarters in New York, Goldman Sachs has a strong presence in India, particularly in Bangalore. The bank is known for its diverse workforce and commitment to innovation.

Morgan Stanley

Morgan Stanley is a leading global investment bank with operations in 36 countries, including India, where it has offices in Mumbai and Bangalore. The bank offers wealth management, research, and investment management services. Morgan Stanley is known for its diverse range of financial services and has established itself as a top player in the Indian market.

Bank of America Merrill Lynch

Bank of America Merrill Lynch, recently renamed Bofa Securities, is one of the largest investment banks in the world. It has a strong presence in India, with offices in Mumbai, Chennai, Delhi, and Bangalore. The bank encourages innovation and career progression for its employees and is known for its commitment to its workforce.

Barclays

Barclays is a British multinational bank with a presence in Delhi, Mumbai, and Pune, India. The bank offers investment banking services and personal, corporate, and private banking services. With over 85,000 employees, Barclays has established itself as a leading player in the Indian market.

HSBC

HSBC, or the Hong Kong and Shanghai Banking Corporation, is the world's seventh-largest bank with a presence in over 70 countries. In India, HSBC has offices in Mumbai, Delhi, and Bangalore. The bank provides a range of services, including investment banking and private banking, and is known for its global reach and established presence.

BNP Paribas

BNP Paribas is a French multinational banking group and one of the largest banking groups in Europe. It has a presence in India, with an office in Mumbai, and offers a range of financial services. BNP Paribas is considered systemically important by the Financial Stability Board and is a leading player in the global banking industry.

Credit Suisse

Credit Suisse is a global investment banking company with a presence in India, particularly in Mumbai. The bank offers private equity, research, and asset management services and is known for its expertise in these areas. With over 45,000 employees worldwide, Credit Suisse is a well-established player in the Indian market.

The role of investment banks in India

Investment banks in India have played a crucial role in shaping the country's economy, handling large and complex financial transactions, and facilitating the growth of businesses and start-ups. They act as intermediaries between companies and financial markets, helping them manage assets and financial dealings.

Facilitating Mergers and Acquisitions

Investment banks in India play a pivotal role in facilitating mergers and acquisitions (M&A). They advise businesses on how to structure deals favourably and provide expertise in navigating the financial and regulatory landscape.

Issuing Initial Public Offerings (IPOs)

Investment banks are instrumental in helping companies issue IPOs and raise capital by selling ownership stakes to the public. They assist in determining share pricing, creating the necessary documentation, and marketing the shares to potential investors.

Underwriting Stocks and Bonds

Investment banks also act as underwriters, assuming the risk of buying shares or bonds from companies and reselling them to the public. They carefully analyse financial data and market conditions to determine the optimal pricing and manage the distribution of these securities.

Wealth and Asset Management

Some investment banks in India offer wealth management services to high-net-worth individuals, providing prestigious investment options and helping them achieve their financial goals. Additionally, asset management services are provided to institutional clients like pension funds and insurance companies.

Research and Trading

Investment banks conduct in-depth research on companies, offering insights and recommendations to their clients. They also engage in trading activities, executing stock and bond transactions on behalf of their clients.

Supporting the Economy

The presence of global and domestic investment banks in India has contributed to economic development, financial inclusion, technological progress, and global integration. They create thousands of jobs, support international trade and investments, and improve the standard of living for many Indians.

Financing Projects and Capital Market Operations

With India's rapidly expanding economy, investment banks are crucial in financing projects and supporting capital market operations for businesses. They help companies raise capital, manage risk, and navigate complex financial transactions.

Specialised Services

Boutique investment banks in India offer specialised services, catering to niche markets and providing tailored solutions in specific sectors like technology, healthcare, and financial services.

In summary, investment banks in India have a diverse range of functions, from facilitating mergers and acquisitions to underwriting securities and providing wealth management services. They play a vital role in the country's economic growth and development, connecting businesses and investors, and facilitating complex financial transactions.

Salaries and bonuses for investment bankers in India

Investment banking is a lucrative career option in India, with salaries rising exponentially over the years. The average salary for an investment banker in India ranges from Rs. 12 lakhs to Rs. 85 lakhs per year. However, this varies depending on the position, experience, qualifications, and the organisation's standing. Here is a breakdown of the salary ranges for different positions in investment banking:

Analyst

The entry-level position in investment banking offers a starting salary ranging from Rs. 8 lakhs to Rs. 12 lakhs per annum. This variation is due to differences in the size of the organisation, location, and the candidate's qualifications. Smaller financial institutions may offer less than Rs. 8 lakhs per annum.

Associate

After gaining two to five years of industry experience as an analyst, investment bankers can advance to the associate position. The average salary for this role ranges from Rs. 15 lakhs to Rs. 25 lakhs per year, depending on qualifications, experience, and the organisation's standing. Associates working in specialised areas such as mergers and acquisitions or private equity can expect higher salaries due to their expertise.

Vice President

Investment bankers who have served as associates for five to ten years may be promoted to vice president. The annual salary for this position varies between Rs. 40 lakhs and Rs. 70 lakhs.

Managing Director

At the highest level of investment banking, managing directors are typically offered Rs. 1 crore to Rs. 2 crores per annum. At this level, an investment banker's salary can be as high as Rs. 16 lakhs per month. The exact pay depends on the bank's size and location, the individual's record of successful deals, client profiles, and income-generating capabilities.

Bonuses

While the base salaries provide a good understanding of the income of investment bankers in India, bonuses can significantly impact their overall compensation. Bonuses for investment bankers in India can range from 50% to 200% of their base salaries, depending on the position and performance. For example, analysts at international banks can expect bonuses of 80% to 100% of their base salary, while associates might receive bonuses of 80% to 120%. Bonuses for vice presidents and directors can be even higher, with estimates ranging from 75% to 125% and 50% to 200%, respectively. Managing directors' bonuses vary the most, with a range of 0% to 300% of their base salary. It is important to note that these bonuses are highly variable and dependent on closed deals, especially for senior positions.

Cost of Living

While the salaries and bonuses for investment bankers in India may seem lower than those in countries like the United States, it is important to consider the cost of living. With a lower cost of living, investment bankers in India can enjoy a higher standard of living and a far better lifestyle than their counterparts in New York or London, even with lower nominal incomes.

Frequently asked questions