Make it big with Investment Banking

By Madiha Jawed

 

Want to make it big? Why not try making a career in Investment Banking! Yes, Investment banking aka i-banking is one of the most promising and finest career options for fresh university graduates possessing the knack for banking and finance. Investment banking is a specialized type of banking, limited to the financial market and concerned with investments as a whole.

 

Investment banks offer a plethora of financial intermediary services to their clients such as underwriting, raising funds in capital markets by issuing equity or debt securities and also facilitating mergers and acquisitions, etc.

 

Eligibility:

 

For pursuing a career in investment banking, individuals must:

 

• Have a bachelor's degree in business administration or related fields such as finance
• Complete an internship before graduating as this profession requires a vast amount of knowledge of banking & finance. Through internships, students will obtain a better idea of investment banks, and will be able to analyze portfolios and assets using valuation models. Besides honing their analytical skills and networks in the field, internship would also assist aspirants to get a job after graduating.

 

Skills and talent required:

 

Investment banking is a good platform for young individuals to progress in the banking industry. Certain core skills are required to excel in this field:

 

• Good working stamina
• Effective communication skills
• Mental and emotional vigor to withstand pressure situations
• The flair to provide valuation estimations and be able to back up calculations rationally

 

Courses offered in India:

 

• Diploma in Investment Banking and Equity Research
• MBA in Investment Banking
• PG Programme in Security Analysis, Portfolio Management & Investment Banking
• UG Programme in Security Analysis, Portfolio Management & Investment Banking
• BA in Finance & Investment Banking
• PG Diploma in Banking & Finance
• Post Graduate Diploma in Investment & Business Research
• Post Graduate Diploma in Global Investment

 

Where to Study:

 

India:

 

Institute of Chartered Financial Analysts of India University (ICFAI) (Tripura)
IIM, Kolkata
IIM, Ahmedabad (IIM-A)
Indian School of Business, Hyderabad
Jamnalal Bajaj Institute of Management Studies, Mumbai
S.P. Jain Institute of Management Studies, Mumbai
Narsee Monjee Institute of Management Studies, Mumbai
Symbiosis Institute of Management, Pune
Indian Institute of Banking & Finance (IIBF), Mumbai
The School of Investment Banking (SIB), Mumbai
Xavier Institute of Management, Bhubaneswar

 

• S.P.Jain Institute of Management & Research, Mumbai
• Veer Narmad South Gujarat University
• Mount Caramel Business School, New Delhi
• Planman Centre for Higher Education (CHE), Delhi

 

Chennai Business School, Chennai

 

• Abroad:

 

Boston College, Boston
Harvard Business School, Cambridge
Princeton University, New Jersey
Stanford Graduate School of Business, Stanford.

 

Career options:

 

A student planning a career in Investment Banking in India can take up the job profiles listed below:

 

• Security analyst
• Foreign exchange trader
• Bank manager
• Financial analyst
• Financial advisor
• Research analyst
• Equity researcher
• Investment banking analyst

 

The general trend seen in investment banking is that under-graduates are hired into banks' analyst programs, whereas, MBAs are generally hired as associates. There are more job options in areas that budding aspirants can consider.

 

• Industry coverage
• Corporate finance
• Capital markets
• Mergers and acquisitions
• Project finance
• Trading
• Structured finance
• Derivatives
• Advisory
• Equity and fixed Income research
• International sales/Emerging markets
• Public finance
• Retail brokerage/ Private client coverage/ Stockbroker
• Institutional sales
• IT and systems
• Ratings Analyst

 

Types of Investment banks:

 

 

• Basic investment bank: These kind of banks issue stocks and bonds to the customers for a pre-specified amount. Subsequently, the bank invests the client's money to purchase the stocks and bonds. These investments differ among banks and countries.
• Merchant Banks: Merchant banks deal in trade financing and provide capital to business ventures. The capital provided is not in terms of loans but in terms of shares. These banks provide finance only to highly recognized and well-known undertakings. Newly formed merchant companies are usually not financed.

 

Remuneration:

 

The best part of this field is the awesome pay package and benefits one is endowed with.

 

Career stage	Remuneration
Freshers or individuals with less experience	Rs 20,000 to Rs 30,000 per month
Young MBAs from recognized institutes	Rs 9 lakh (approx) per annum
Professionals with experience of 5-6 years	Rs 12 lakh - Rs 1 crore per annum (depending on the firm one works for)

 

Future of Investment banking in India

 

According to reports, the future of investment banking in India looks decent. However, it may witness a set of new investment guidelines. Considering the after-effects of the economic recession in the US or the global slowdown for that matter, the Indian policy makers might take a staunch step in formulating stringent norms for investment banking services in the country. This might result in:

 

• Better risk management
• Restrain companies from getting into fraudulent and unethical means of trading
• Ensure recovery of their profits
• Short-term funding to equalize assets and liabilities