Investment Banking is the best match for you, as you have a broader scope for high-paying positions, and after gaining experience, you can have both authority at work and a better paycheck. In India, Investment Banking companies are located in big cities like Delhi, Mumbai, Hyderabad and Bangalore. Investment Banking jobs in Mumbai are flourishing as Mumbai is the major spot for financial operations as it hosts stock exchanges, International banks, and even the Reserve Bank of India (RBI). Let’s, dive deep into the Investment Banking jobs in Mumbai and explore the topic.
Investment Banking is spreading its wings wide across the globe. And Mumbai, being the financial capital of India, is booming with opportunities ready for you to grab. Are you someone who is keen on financial systems and banking operations? And wanted to establish your career in similar fields. You are at the right place.
Investment Banking
Investment Banking is an extensive segment of banking that performs complicated financial transactions. It forms a bridge between the people who had capital and wanted to invest it and the people who needed financing for their projects. Investment banking came into the picture as an institution was needed which can be trusted, and remain unbiased in the negotiation process.
So, Investment banks serve as a middleman. And thus, quality and reputation were brought by the middleman. Investment banking in simpler terms, involves security underwriting, they buy financial securities like bonds and stocks from an issuer and re-sell them to an investor/ a group of investors. Its services also include advising for mergers and acquisitions and on capital markets, also managing debt.
Commercial Banking is different from Investment banking as the former one, is mainly involved with deposit-taking and credit-giving services whereas, the latter involves underwriting of debt and equity, trading, advisory mergers & acquisitions, and asset management services. Some banks are designated as Universal Banks as they run both the activities of commercial and investment banking.
History of Investment Banking
The process of investment banking emerged in America in the 19th century. The American economy was growing so fast that commercial banks could not serve the expansion of railroads, mining companies, and heavy industries. An important law, the Glass-Steagall Act was passed after the 1929 stock market crash.
The reason behind this was to separate investment and commercial banking services, as their mixing was regarded as very risky. And since the law was found to be rough, it was repealed. Another act, the Gramm-Leach-Biley Act was passed in 1999 which allowed the mixing of investment and commercial banking services. And in today’s world, some of the major banks are conglomerates.
Importance of Investment Banking
As we have discussed, how investment banking works. It is also vital to know its importance and how you benefit from it before you seek any investment banking jobs in Mumbai. Investment banks work closely with corporate clients, pension funds, financial institutions, and the government to structure and execute some of the largest transactions. Some of their benefits are:
- Investment banks act as a middleman between the issuer and the investor.
- Investment banks provide guidance and assistance to their clients regarding any risks or debt involved.
- They carry out thorough investigations about both the companies and clients so that they can provide the best deals and negotiations.
- Investment banking saves time by studying and analyzing financial operations and provides guided solutions.
- Security of confidential data is promised.
Types of Investment Banking
While learning about Investment banking jobs in Mumbai, one must be familiar with the types of investment banks present and their essential aspects. Investment banks are categorized into three parts with some sub-divisions. These are:
1. Boutique Banks
Boutique banks are the ones specializing in a particular aspect of investment services. They are then, divided into two parts:
a) Regional Boutique Banks
Regional Boutique Banks are the smallest in size and are present in specific parts of a country. They work with small startups and companies. The main service offered is mergers and acquisitions advisory.
The deal size of a regional boutique bank is less than $10 million.
b) Elite Boutique Banks
Elite Boutique Banks have a high resemblance with bulge bracket banks. They are easily available, have no limitation of location, and have more exposure. They can be present nationally or internationally. The main service offered is mergers and acquisitions, and sometimes, asset management services with re-structuring. But each elite bank offers a different single service.
For example, a particular elite bank deals in the oil sector while another elite bank of the same city deals in the consumer goods sector. Similarly, one elite bank provides M&A services and the other one provides restructuring services.
The deal size of an elite boutique bank is $1 billion. Some examples are:
- Evercore Partners
- Lazard
- Centerview
- PJT
- Moelis & Company
2. Middle Market Banks
Middle Market Banks lie exactly in between boutique banks and bulge-market banks, in terms of size. They offer advisory for financial services to medium-sized enterprises. They include various services like asset management, raising equity & debt capital, and other financial services. They don’t have much brand value.
The deal size of a middle market bank is $500 million to $1 billion. Some examples of middle market banks are:
- KPMG
- RBC Capital Markets
- Cowen Group
- Price Waterhouse Cooper
3. Bulge Bracket Banks
Bulge Bracket Banks are the largest in size and have a global presence. They are also biggest in terms of number of employees and clients. They offer almost all kinds of financial services. They have particularly, three divisions: trading, retail, and advisory.
The deal size of a bulge bracket bank is more than $1 billion.
Some of the bulge bracket banks are:
- Goldman Sachs
- JP Morgan Chase
- Morgan Stanley
- Citigroup
- Barclays
- Axis Capital
- ICICI Securities Limited
- SBI Capital Markets Limited
Types Of Investment Banking Jobs in Mumbai
A career in investment banking is prestigious and monetarily rewarding. In order to join this field, you must have a practical mindset, be prepared to work in a fast-paced environment, and have a thorough understanding of financial services and terminologies. As Mumbai is a house for many leading investment banks not only in India but also in foreign countries, it has a great potential for growth and so, the number of investment banking jobs in Mumbai is ever-increasing.
On the basis of your qualifications, skills, and experience, you can apply for the appropriate role for you.
1. Investment Banker
The term “Investment Banker” is a broader term and it ranges with the qualification or the experience you hold. In the increasing order of their seniority, positions are Analyst, Associate, VP, Director, and MD.
Eligibility criteria: Bachelor’s degree or B.Com (which covers economics, commerce, accounts, corporate English).
BA Finance BA Economics or Business For higher level, you must have an MBA or CFA
And after pursuing an internship, you are good to go for investment banking jobs in Mumbai.
Roles of Investment Banker
- Researching and analyzing data and reports in order to extract significant information.
- Supervising the staff and the day-to-day collection of funds, and investments and minimizing the losses if any.
- Raising capital by issuing and selling securities and bonds.
- Providing advisory for mergers & acquisitions and trading purposes.
- Perform financial modeling and help clients to find the best financial solutions.
Average Salary: The average salary of an investment banker is between 3 to 8 lakhs per annum (entry-level). It varies with qualification and experience.
2. Investment Banking Analyst
This is an entry-level job and if you have done your bachelor’s degree, you can definitely opt for it. They support their senior-level employees by carrying out extensive analyses of market trends and assist in making presentations and legal reports. They work for long hours and have tight schedules.
Roles of Investment Bank Analyst
- Studying and analyzing market trends to gather information to compete on the national and international levels.
- With effective communication and technical skills, provide leadership and advice whenever required.
- Problem-solving and decision-making for the clients according to their needs and requirements.
- Carry out recruitment processes in the firm/company.
- Helping their seniors in the presentation-making process and in decision-making for mergers & acquisitions.
Average Salary: The average salary of an investment banking analyst is 11 lakhs per annum.
3. Investment Banking Associate
Investment Banking Associates are next in the hierarchy after the analysts. Their main task is to mediate effectively between the seniors such as VPs, Directors, MDs, and analysts. They take care of the presentations and Excel sheets formulated and drafted by the analysts.
Eligibility Criteria: MBA or CFA after working as an analyst for 2-3 years, you will get promoted to the position of associate.
Roles of Investment Banking Associate
- Work closely with clients and answer all queries related to their models or presentations.
- Supervision of the analysts.
- They work more towards the planning and plotting for the deal negotiations.
- Conducting in-depth research to identify possible investment opportunities.
- They perform leadership roles and lead different teams, through their critical thinking skills.
Average Salary: The average salary of an investment banking associate is between 15 to 30 lakhs per annum.
4. Equity Research Analyst
If you have an analytical mind and are willing to take up your career in the investment banking field, this is one of the topmost jobs in demand. An Equity Research Analyst is a person with expertise in a particular industry or country, with which he provides productive recommendations and estimates. He works both on the buy and sell side of the firms.
Eligibility Criteria: Bachelor’s degree preferably in Finance, accounts, economics, or business with strong analytical, mathematical, and data modeling skills.
Roles of Equity Research Analyst
- Works in a financial security industry or firm, helping the buy and sell side to make profitable decisions.
- Conducting thorough research to meet the needs of clients and to support the organization.
- Report making after analytic research to provide assistance to the organization and the government, making important decisions according to the market trends.
- Attend client meetings and stay at the front to make the clients feel inclusive and their presence matters.
Average Salary: The average salary of an Equity Research Analyst is 8 lakhs per annum.
5. Mergers & Acquisition Analyst
Mergers & Acquisition Analyst is one of the most demanding investment banking jobs in Mumbai. They hold expertise in the mergers and acquisitions area, and how to execute this efficiently. This includes a detailed amount of study and analysis of the merging companies and how they can achieve their optimum growth.
Eligibility Criteria: Bachelor’s degree in finance, accounts, economics, business along with, Master’s degree in business management or finance.
Roles of Mergers & Acquisitions Analyst
- They do the initial work on a deal by studying, researching, and analyzing.
- Make reports on the basis of research and pitch companies to buyers.
- Assist the seniors in preparing presentations, deal negotiations, and managing timelines.
- Performs financial modeling.
Average Salary: The average salary of a Mergers and Acquisitions Analyst is 8 lakhs per annum.
6. Risk Management Analyst
While running a business, there are several risks involved, in an attempt to minimize the losses and the risks, risk management analyst jobs are taken into consideration by many organizations. And this position is becoming essential in the long-term thus increasing its opportunities for investment banking jobs in Mumbai. You can also call them, risk managers.
Risk Management Analysts are of different types, depending on their area of risk management. Examples: Regulatory Risk Analysts and Operational Risk Analysts.
Eligibility Criteria: BCom, BBA
MBA, MCom and after gaining experience as an entry-level executive, you can pursue it.
Roles of Risk Management Analyst
- Study and review the strategies and investments done by the organization.
- Forecasting any losses or estimating changes in the existing operations through currency exchanges, restructuring, and building other investment strategies.
- Managing compliance with industry standards and government rules and regulations.
- Formulating risk management models to forecast the upcoming risks and losses to the clients.
Average Salary: The average salary of a risk management analyst is 14 lakhs per annum.
Check here the best Investment Banking Courses in India
Investment Banks in Mumbai
As the demand for investment banking is increasing, the number of job opportunities and their seekers are also growing in abundance. In today’s world, it is one of the most attractive jobs, not only because of the salary gains but also because of the experience and knowledge one entails after stepping into this territory. Here, we will learn about the investment banks in Mumbai and the investment banking jobs in Mumbai, provided by these banks. There are many investment banks in Mumbai and some of them are listed below:
- Goldman Sachs
Goldman Sachs is one of the leading investment banking firms globally. Founded in 1869, by Marcus Goldman in the New York City. In the years 1882 & 1885, his son and son-in-law joined the firm leading to the setting up of Goldman Sachs & Co. In December 2006, Goldman Sachs established its onshore presence in India. It was Sidney Weinberg, who shifted the focus of the firm from trading towards investment banking.
Chairman and CEO: David Solomon
Market Capital: $105.09 B
Consolidated Asset: $486.9B
Locations: 100 + branches globally
Employees: 48,500 +
Services Offered: Securities Underwriting, Asset Management, Advisory for Mergers and acquisitions and Restructuring, Investment Management, Hedging, Enterprise Partnerships, Transaction Banking, IPO deals and Bond Offerings, Prime Brokerage, Private Equity, Market Making, and Risk Management.
- JP Morgan Chase
JP Morgan Chase was established as The Manhattan Company in 1799, by Alexander Hamilton and Aaron Burr, as a water supply company. After 5 months, a bank was opened under the same name. In 1895, with the partnership of Drexel, Morgan & Co., it was renamed as JP Morgan & Co.
With the merger of Chase Manhattan Corporation, it was renamed JP Morgan Chase & Co. It is amongst the top 4 leading investment firms globally. Such giant firms’ presence is the main factor behind the augmentation of investment banking jobs in Mumbai.
Chairman: William B. Harrison Jr.
Market Capital: $425.39 B
Consolidated Asset: $4 trillion
Employees: 2,40,000 +
Services Offered: JP Morgan & Chase is known for Commercial Banking, Investment Banking, Asset Management, and Financial Transactions. Other services are Accounting, Liquidity Management, Securities Lending, Mergers and acquisitions, Debt market, and Hedge Funds.
- Morgan Stanley
Morgan Stanley came into existence on September 16, 1935, formed by a partnership between JP Morgan & Co., Henry Sturgis Morgan, and Harold Stanley. However, the current Morgan Stanley was formed after merging Morgan Stanley with Dean Witter Discover & Co.
Chairman: James P. Gorman
Market Capital: $138.09 B
Consolidated asset: $311 B
Employees: 80,000 +
Services offered: Morgan Stanley provides three services namely, Wealth Management, Investment Management, and Institutional securities. Wealth management includes Financial and Wealth Planning services, Brokerage, and Investment Advisory. Institutional securities include Mergers and acquisitions advisory, Underwriting, Sales and Trading, and Corporate Lending.
Investment management entails Traditional Asset Management including Equity, Fixed Income, Liquidity, Merchant Banking, and Real Estate Investing.
- Citigroup
Citibank was established in 1812 and then, was named the National City Bank of New York. After the merging of Citicorp and financial conglomerate Travelers Group, the name was changed to Citigroup. It set up the world’s first ATM and is considered one of the world’s largest finance and investment groups.
Chairman: John C. Dugan
CEO: Jane Fraser
Market Capital: $79.07 B
Locations: 2,649 branches in 19 countries
Employees: 2,40,000 +
Services Offered: Investment and Corporate Banking Services, Public Offerings, Mergers and acquisitions advisory, Underwriting, Hedge Fund, Cash Management, Collateral Debt Obligations, Private Equity Services, Portfolio and Risk Management, and Retail Consulting services.
- Barclays
Barclays laid its foundation in 1690 when John Freame and Thomas Gould came together in London. After James Barclay, joined them as a partner in 1736, the business was renamed Barclays. It was the first to deploy the world’s first cash dispenser. Barclays PLC operates as the parent company of Barclays investment banking. It introduced the first debit card in the UK in June 1987.
Chairman: Nigel Higgins
Market Capital: $28.67 B
Locations: More than 4,750 branches in over 55 countries worldwide
Employees: 87,000 +
Services Offered: Private Banking, Banking and Credit solutions, Wealth advisory, International Corporate Banking, Mergers and acquisitions, Foreign Exchange, Mortgage, Equity Capital Market, Debt Capital Market, and Real Estate Financing.
FAQs On Investment Banking Jobs in Mumbai
Question: What basic knowledge is required to become an investment banker?
In order to become an investment banker, you must possess persuasive communication skills, high analytical skills, and be keen to learn and upgrade yourself whenever required.
Question: What are the working hours for an investment banking associate?
The average working hours for an investment banking associate is 80 hours per week. It may increase up to 100 hours, depending on the deals and the company you work with.
Question: Are there any top online institutes providing investment banking courses?
Yes, there are many top online institutes providing investment banking courses. Some of these are:
- IIM SKILLS
- The Wall Street School
- Proschoolonline
- Intellipaat
Conclusion: Investment Banking Jobs in Mumbai
After gaining a deep understanding of the article, I would like to highlight that having the desired qualifications is not going to develop you into an exceptional investment banker. For this, you should possess some efficient skills like communication, which plays a significant role in many of the job profiles that have been discussed in the article, requires an expert level of communication to build the interest of clients, presentation skills, convincing power, etc. The Investment Banker job profile demands a person with high analytical skills as you will have to prepare financial models and perform extensive market research.
To summarise, investment banking jobs in Mumbai can become your stepping stones to success, with its high demand and income rise. The job is somewhat challenging in nature, especially at the entry level because of the long working hours that you have to dedicate. But with the right knowledge, willingness to learn & adept, excellent communication skills, problem-solving and innovative nature, along with resilience will provide you with immense strength to pave your path forward. Investment banking jobs in Mumbai promise rewarding professional as well as personal growth.