Written By Team CFI
Investment banking is one of the most promising careers in 2021. The Indian financial industry has been opened up to a wide range of multinational firms as a result of globalization. Global firms like Morgan Stanley, Goldman Sachs, JP Morgan Chase, Barclays, as well as well-known Indian banks like HDFC, ICICI, Axis Bank, and others, have created a very competitive market for investment bankers in India.
Between 2018 and 2023, the investment banking sector seems to be growing at a 1.2 percent CAGR. In 2023, it may be worth $78,008.7 million. In this blog, we’ll look into the possible salaries an individual can make in the sector of Investment Banking.
Salaries of Investment bankers in India
Investment bankers in India get paid a very respectable sum of money.
An fresher analyst in Investment Banking earns around Rs 6-8 lacs per annum on average in India. An experienced Investment Banker with 5-10 years of experience earns around 15-30 lacs, and 10 to 20 years of experience earns an around 30-40 lacs.
Salaries still, might vary depending on individual responsibilities and work experience.
Let’s look at some specific job titles and the salary that comes with them.
1. IB Analyst / Business Analyst
The job of Investment Banking Analyst is provided to those who have recently completed their Grad / Post Grad degree. The primary responsibilities of these analysts are to perform research and analysis tasks for various investment banking projects. An fresher with this designation may expect to make around 6-7 lacs per annum on average, while more experienced applicants can expect to earn around 10-15 lacs.
2. Investment Banking Associate
This is a step up from working as an Analyst. Candidates who recently complete their MBA or CFA and holds 3-5 years of experience are considered for Associate roles. They’re also employed to bridge the gap between senior and novice analysts. The responsibilities include getting the work done from Analysts, finalize their work and provide helping hand to senior bankers (VP and Above). This salary for Associates ranges between Rs 10-15 lacs on average.
3. Vice President
The role of a Vice President is to finalize Pitchbooks, IMs created by Analysts and Associates and use them in various client meetings. On one hand, VP co-ordinates with associates to finalize the pitch, and on the other hand, keep a connect with clients to understand their requirements. This way they fulfill clients’ requirement and provide highly customized solutions to their business challenges. The salary in ranges
4. Managing Director
The position of MD is of highest rank in an Investment Banking role. Not all Investment Banking candidates reach upto this designation. It requires a great deal of skill and experience to reach this position. MDs are directly responsible for company’s profitability, keep a track of markets, and how deals are happening. They use their experience to originate new ideas, generate more deals and get them executed. They may be involved in deal execution sometimes. An MD has the potential to earn a salary of 40-80 lacs or more depending upon type of experience.
What is the most advantageous payment structure for an investment banker?
Bonuses and salary are the two top components of an investment banker’s compensation.
The bonus can account for a large portion of a banker’s overall earnings in all roles, but especially at higher levels, where bonuses can be several times the base investment banker salary.
Why are bankers so well paid?
They are paid for their services because banks are involved in high-value transactions with high fees. It is expected that these individuals be hardworking, intelligent, and talented for such an important job, and as a result, they are well paid.
Finally, employment in investment banking usually pays well, but such a field is typically only chosen by individuals with high energy, excellent analytical and communication skills.
As a result, potential applicants should be prepared to put out the effort necessary to complete their course from a well-established education firm and then reap the benefits of their efforts once they graduate. It is important to plan your financial journey in such a manner that you can take on the role of analyst and grow further from there. To know more about how CFI Education can help you kickstart your investment banking journey, visit our website- www.cfieducation.in.