How Much Do Investment Bankers Earn In India?
Do you know the average salary of an Investment Banker in India is from 12 lakhs to 13 lakhs, according to Glassdoor? The investment banking sector is growing at a 1.2% CAGR for 2018 to 2023. It is expected to reach a value of $78,008.7 million by 2023.
According to the Bureau of Labor Statistics, the demand for financial services sales reps is estimated to rise by 4% by 2029. This data is combined with attractive salary packages and a secure career. This positions investment banking as one of the most profitable and in-demand career choices.
In this article, we have revealed the salary of an Investment Banker in India. We have also covered the factors that influence it and the Investment banker's salary in the US.
What does an investment banker do?
Investment bankers act as a bridge or intermediary between investors looking for investment opportunities and organisations looking for funding. The duties of investment bankers are divided into two categories: assessing a company's financial situation and assisting it in meeting its financial goals. Investment bankers are responsible for analysing a company's financial situation and capital requirements to offer a viable plan for meeting its financial goals.
Table of Contents
- 1 Investment banker's salary in India
- 2 Designation-wise salaries of an investment banker in India
- 2.1 Salary of an Investment Banking Analyst
- 2.2 Package of an Investment Banking Associate
- 2.3 Pay of a Business Analyst
- 2.4 Remuneration of a Financial Manager
- 2.5 Compensation of a Financial Director
- 2.6 Factors affecting Investment banker salary in India
- 2.7 Skills
- 2.8 Location
- 2.9 Work Experience
- 2.10 Companies
- 2.11 Investment banker salary in the US
Investment banker's salary in India
The pay ranges from 3 lakhs to 1 crore depending on the skills, roles, designation, experience, job location, company, etc. But, the starting salary of an investment banker is better than many other professions, with initial pay of Rs.7-8 LPA. That's why experienced investment bankers or Investment Banking Analysts can rise to higher positions fast. This is because their salaries rise quicker, and they earn higher paychecks.
Designation-wise salaries of an investment banker in India
Salary of an Investment Banking Analyst
This is the role assigned to people who've just graduated from business schools. Their tasks mainly include research and analysis of investment banking methods. A fresher with this designation would earn around Rs. 5 LPA on average. Also, an experienced candidate can earn Rs.6-7 lakhs.
Package of an Investment Banking Associate
This role is an upgrade from the role of a Banking Analyst. The duties involve the analysis of business strategies. They act as an intermediate between junior analysts and senior officials. The average salary for this role lies between Rs. 7 lakhs to Rs.10 lakhs.
Pay of a Business Analyst
This role is similar to the role of an Investment Banking Analyst. However, the difference here is that the focus shifts to business strategies such as profit optimisation and asset management. For this profile, a candidate would earn between Rs.6 lakhs and Rs.7 lakhs.
Remuneration of a Financial Manager
Being a high-profile role, financial managers mainly oversee a company's financial health. They audit financial reports, analyse investment activities, and work out long-term financial goals for the company. Also, they use tools to analyse the data. A financial manager in India would earn around Rs. 10 lakhs on average.
Compensation of a Financial Director
The role of the Financial Director is a senior one, as they are leaders of senior executive teams. And their primary responsibility is to frame financial policies. They also make the proper process to meet a company's business requirements. In addition, they oversee operational and strategic ongoing at the company. So, a Finance Director can have a starting salary of around Rs. 20 lakhs. With an experience of 4-5 years, one can earn anywhere between Rs.45 lakhs and Rs. 50lakhs.
Factors affecting Investment banker salary in India
In India, the average investment banker's salary is significantly higher. But, to determine the exact pay, you must understand the factors that influence the salary of an investment banker.
The below-mentioned factors affect the salary of an investment banker.
An investment banker's most essential skills are financial analysis and modelling expertise. Along with this, the knowledge of mergers and acquisitions plays a critical role too. The ability to work independently is also an essential skill to succeed in the investment banking field.
An understanding of deal structuring and closing principles is essential. Having excellent communication and networking abilities play a vital role. In addition, the ability to conduct research, be quantitative and analytical and explain market events.
Few cities have a higher demand for investment bankers, causing average pay to vary significantly. But, depending on the cost of living, some cities pay comparatively less. Surprisingly, Mumbai (84% higher than average), Pune, and New Delhi pay 4% higher than average. So, these cities are the best locations to work as investment bankers. But, some places offer lower salaries to investment bankers, like Bangalore, Hyderabad, and Chennai.
More experience results in more gain in the field of investment banking. The average salary of one to four years of an experienced investment banker is Rs. 9 lakhs annually. However, bankers with five to nine years of experience earn around Rs. 20 lakh per annum. With an experience of around ten years, professionals can earn approximately Rs 30 lakh per year.
Some banks and companies are paymasters, while others pay less. So, investment bankers prefer firms such as Morgan Stanley and Goldman Sachs. Other liked banks are Barclays and J.P. Morgan. Investment bankers are generally paid well by most firms. However, you should not focus only on the package. The profile and work are deciding factors in rejecting or selecting a company.
Investment banker salary in the US
The United States pays well to investment bankers. It consistently ranks first in terms of compensation for its investment professionals. Furthermore, cities such as New York reward their professionals besides the salary. It offers valuable and lucrative benefits.
How to start your journey as an Investment Banker?
Before entering any sector, gathering knowledge about the industry, scope, career growth, and job opportunities are always good. The second step is to equip yourself with the knowledge and skill set to become an investment banker. For this, you should get enroled in an institute and learn investment banking concepts.
An institute that offers excellent knowledge, expert faculty and an industry-oriented curriculum will be lucrative. But, if they provide career assistance and interview preparation, that will be the cherry on the cake. So, try to find an institute that offers all these and then invest your money.
Apart from this, having a good network also plays a significant role in getting you to start your career as an Investment Banker. For that, you can do an internship with top companies and work hard. Moreover, during the internship, you can learn industry concepts and how to behave professionally.
In conclusion, careers in investment banking training usually offer good salaries. However, they are exclusively bagged by candidates with the best academic backgrounds.
Hence, candidates must work hard. They should try to graduate from a top educational institute. Also, they must know how to reap the benefits of their effort. And, plan a financial career properly to take up the role of an analyst.