Typically, when you imagine a bank, you envision a scenario where people go to make deposits, withdraw cash and apply for loans. These banks are classified as Commercial Banks, which are a broad category of financial institutions.
In the investment industry, there is a completely unique type of bank that actively participates in advisory-based financial transactions on behalf of individuals, corporations, and governments. Investment Banks are banks that specialize in stocks, bonds, and other investment products. Investment banks such as JPMorgan Chase and Morgan Stanley are among the most well-known in the world.
Investing in India dates back to the beginning of the 19th century after European merchant banks established trading houses. Indian banking was influenced by foreign banks until the State Bank of India entered the market in the 1970s by establishing the Bureau of Merchant Banking, a division of the State Bank.
The Association of Investment Bankers in India (AIBI) reports that banking didn’t get a lot of attention until the 1980s. As early as the 1990s, the Securities and Exchange Board of India registered over 1500 bankers, and the number continued to rise (SEBI).