How Much Do Investment Bankers Earn In India?
Table of Contents
- 1 How Much Do Investment Bankers Earn In India?
- 1.1 Investment banker salary in India
- 1.2 Designation-wise salaries of an investment banker in India
- 1.2.1 Salary of an Investment Banking Analyst
- 1.2.2 Package of an Investment Banking Associate
- 1.2.3 Pay of a Business Analyst
- 1.2.4 Remuneration of a Financial Manager
- 1.2.5 Compensation of a Financial Director
- 1.2.6 Factors affecting Investment banker salary in India
- 1.2.7 Skills
- 1.2.8 Location
- 1.2.9 Work Experience
- 1.2.10 Companies
- 1.2.11 Investment banker salary in the US
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 the year 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. Together all of 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.
Investment banker 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. 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 analysis of business strategies. They act as an intermediate between junior analysts and senior officials. An 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. They are leaders of senior executive teams. Their primary responsibility is to frame financial policies. They also make the right 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 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 expertise in financial analysis and financial modelling. 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 important. 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 termed as the best locations to work as investment bankers. But, there are places that 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. In fact, 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 to reject or select a company.
Investment banker salary in the US
The United States pays well to investment bankers. In fact, 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.
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.