Investment Banking Career in India

Investment banking is essentially focused on the creation of capital companies, governments, and other entities and typically centred around three core functions, these are Corporate Finance, Sales & Trading, and Transaction Banking. Corporate Finance lies at the core of investment banking. Its where banks focus on how customers build their businesses or raising funds in capital markets and by offering strategic moves like mergers and acquisitions, assets finance, and structure finance. Global markets include sales, trading, and structuring a wide range of financial markets products. Structuring and research provide analysis of market products and trading strategies for clients for trade happening increasingly quickly executed at the click of the button or automatically using pre-program algorithms. 

Investment banking is a company that helps other companies to raise money, or buy or sell companies, or to sell themselves even. They do IPOs as well, that’s initial public offering which, means the company is being listed on the stock market. They also do a lot of M &A, that merger, and acquisitions, and it is the most sought-after job in all of finance. A lot of people want to become investment bankers although that the hours are brutally long but an individual may be the most marketable in finance if he works as an investment banker, these are very tough jobs to get, and again, hours are brutal. What we call this is origination so in investment banking they originate. They create the product, they create the IPO, and, if you can originate or create the product then you go to another firm in a sells role or whatever role, and sell that product, or market that product. 

        

An individual should have some qualifications if he wants to enter Investment banking Industry. For that, one should possess MBA (finance) qualification because it teaches students all the disciplines as required in the IB domain that involves finance, accounting, business acumen, marketing, financial analysis, management consulting, and accounting knowledge. An individual who works as a Chartered Financial Analyst, then he can apply for the IB industry. Nowadays, CA people are applying for Investment banking Industry because of the good-paying structure and its popularity among CA students. An individual who has done graduation can also apply for IB at any entry-level (Intern).

Investment banking is a high-pressure and high-state job, and it is recommended especially to those who are good at-risk assessment and evaluation and possess strong interpersonal skills. Specialization in Special Finance, Specialization in Portfolio Management, Specialization in International banking, Specialization in Merchant banking Finance Services, Specialization in Income Securities, and legal matters can apply to an investment banker. In the last few years, a lot of students who join the MBA program and probably who have that Investment banking role insight then they would supplement in the MBA degree with the CFA which, is Chartered Financial Analyst which would be level 1, level2 and level3 and it adds on their skills. 

A few skills set which are particularly important for a foreign investment banking career that one should have a strong quantitative aptitude, one should behave a flair for numbers. It will be good if one knows the valuation technique, has done a valuation, prepared a financial model for the next five years for the company. It is also good if one builds connections and networking which is an important part of the job. An individual who builds connections with the investment bankers can help him/her to land a good profile job in investment banking. For applying to an investment banking career, an individual should know the Profit and Loss Account, Balance Sheet, and Cash Flow Statement then only any financial recruiter will hire him/her.

Investment banking in India started in the 19th century. In this period, most of the European banks first established their trading industries in India. In the 1970s eras, the State bank of India crated a bureau of merchant banking. At the same time, ICICI bank started offering merchant banking services. In the 1980s eras, banking become less famous and did not get much appreciation. To control these huge numbers of banks, AIBI (Association of Investment bankers of India got started. Its main objective is to regulate the legal and ethical practices among members and to promote and encourage the expansion of the industry.

India’s top-ranking high reputed banks have a few people in their IB groups, and each group hire only a few efficient peoples each year. Top and high reputed banks recruit candidates from the top IIMS institutions. Most of the candidates of IIM join banks as Analysts and earn solid compensation.  

Most of the international bulge bracket banks had joint ventures with domestic banks. But after some time, domestic banks ended these JVs and started operating independently like Kotak with GS and JS Financial with MS. Deal activity driven by ECM and IPOs are quite small by the standard of Western markets. Most of the international bulge bracket banks and In-between -a-Banks have effective presence here. Most of the bankers in India want to get into private equity. Nowadays, there are no real hedge funds, and mutual funds that are highly regulated. Therefore, PE is the most attractive option. A student can work in PE for a few years and can complete MBA and can return home to continue into private equity.   

Big business equals big money. When an individual is an integral part of the business’ decision-making process concerning finances, there never seems to be enough money. Money is needed to grow and prove product or services to earn revenue. Money is needed to make money. This problem has been dealt with by many business owners and corporate executives ever since humans first had the idea to go into the business. Corporate finance is the field of finance that has goal to provide money for businesses. These sources provide capital to corporations so that payment is done for structural improvements, expansion, and other value-added projects and enterprises.

Sophisticated strategies are created for the client’s corporate finance needs and Investment banking provides comprehensive financial advisory, financing, capital raising, and risk management services to governments, financial institutions, and corporations. Investment banking industry coverage groups involves communications, consumer, financial institutions, healthcare, industrial, real estate, technology, power, and utilities.

Merger and Acquisition (M&A) refers to the consolidation of companies or assets through various types of financial transactions that involve mergers, acquisitions, consolidation, tenders offer, purchase of assets, and management acquisition.  Mergers and Acquisitions may also be defined as the process of one company that combine with one other companies. Barclays’ Mergers and Acquisition (M&A) group are to deliver strategic advisory to clients and provide the entire spectrum of alternatives which is available to clients involve acquisition, restructuring, and special committee assignment.

For a long time, Barclays has been the consistently successful leader in the fixed income markets, and rank among the top underwriters of fixed income securities in India. Barclay’s debt capital markets work successfully with coverage banks so that it can originate, structure and market fixed income securities to investors. Investing banking companies like Barclays deal with the risk management partners and further provide comprehensive financing solutions for non-investment-grade clients across all industry segments using leveraged loans and high yield bonds.  

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