In 2021, investment banking is one of the most lucrative career opportunities. Globalization has opened up the Indian financial sector to numerous international players. These companies such as Morgan Stanley, Goldman Sachs, JP Morgan Chase, Barclays along prestigious Indian banks like HDFC, ICICI, Axis Bank, etc. have created a very competitive job market for investment bankers in India.
The investment banking sector seems to be growing at a 1.2% CAGR for 2018–2023 and may reach a value of $78,008.7 million by 2023. In this article, we’ll dive into what salaries a career in investment banking can get you.
Salaries of Investment Bankers in India
The average salary of an Investment Banking Analyst in India is around ₹9.2 lakhs. So, it is safe to assume that an Investment Banker in India earns between ₹9-10 lakhs on average.
However, the salaries differ based on specific job roles and experience.
Let's talk about some of these particular designations and break down the salary offered for each of them.
- Investment Banking Analyst
This is the role assigned to people who’ve just graduated from business schools. Their tasks mostly entail research and analysis about investment banking methodologies. A fresher with this designation would earn around ₹5 LPA on average, while an experienced candidate can earn around ₹6-7 lakhs.
- Investment Banking Associate
This role is an upgrade from the role of a Banking Analyst. The duties involve analysis of business strategies and also act as an intermediate between junior analysts and senior officials. An average salary for this role lies between ₹7 lakhs to ₹10 lakhs.
- 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 optimization and asset management. For this profile, a candidate would earn between ₹6 lakhs and ₹7 lakhs.
- Financial Manager
Being a high-profile role, financial managers mostly oversee the financial health of a company. They audit financial reports, analyze investment activities and work out long-term financial goals for the company, using tools such as data analysis. A financial manager in India would earn around ₹10 lakhs on average.
- Financial Director
The role of Financial Director is a senior one. They are leaders of senior executive teams, their main responsibility being framing financial policies and procedures to meet a company’s business requirements. They oversee bo operational and strategic ongoings at the company. A Finance Director can have a starting salary of around ₹20 lakhs and with around 4-5 years of experience, one can earn anywhere between ₹45 lakhs and ₹50lakhs.
In conclusion, careers in investment banking training usually offer handsome salaries, however, they are almost exclusively bagged by candidates with excellent academic backgrounds.
Hence, prospective candidates must be prepared to work hard to graduate from a premier educational institute and then reap the benefits of their effort, once they graduate. You need to plan your financial journey properly to take up the role of an analyst.