Back close

How to Become Investment Banker: Roles, Qualification, Eligibility, Jobs, Salary and Exams

February 3, 2025 - 10:51
How to Become Investment Banker: Roles, Qualification, Eligibility, Jobs, Salary and Exams

Investment banking is a highly competitive and demanding field that offers an inavitable opportunity to work on high-profile deals. If you’re driven, ambitious, and possess strong analytical and financial skills you are all welcome to this investment banking career. This article concentrates on topics starting from answering a general question like what is investment banking , who an investment banker is and eventually leading to roles of an investment banker, investment Banker qualification, investment banker jobs, investment banker salary for freshers, investment banker salary abroad, Senior Investment Banker Salary in India and at last a table of important exams for an investment banker.Let us discuss the topics in detail.

What is Investment Banking?

Investment banking is a specialized field within finance that focuses on providing financial advisory services to corporations and governments. Unlike commercial banks that primarily deal with lending money to individuals and small businesses, investment banks engage in more complex and large-scale financial transactions. 

Think of them as financial advisors for businesses and governments. They help these entities make crucial financial decisions and achieve their financial goals. 

Who is an Investment Banker?

Investment bankers are the professionals who work within investment banks. They possess in-depth knowledge of finance, economics, and accounting. These individuals are highly skilled in: 

  • Analyzing financial markets: Understanding market trends, interpreting financial data, and assessing risk.
  • Conducting complex financial modeling: Building sophisticated models to evaluate investment opportunities and assess the financial impact of different decisions.
  • Advising clients on a wide range of financial decisions: Providing expert guidance on mergers and acquisitions, capital raising, restructuring, and other strategic financial moves.

What are the Roles of an Investment Banker?

Investment bankers play crucial roles in several key areas: 

  • Capital Raising:
    • They assist companies in raising capital through the issuance of stocks and bonds.
    • This includes advising on Initial Public Offerings (IPOs), where a private company goes public by offering its shares to the public for the first time.
    • They also help companies issue debt securities such as bonds to raise funds for expansion, acquisitions, or other corporate purposes.
  • Mergers & Acquisitions (M&A):
    • Investment bankers act as advisors in mergers and acquisitions deals.
    • They conduct thorough due diligence, value target companies, negotiate deal terms, and help structure transactions.
    • This involves advising companies on whether to acquire other companies, merge with another company, or divest certain business units.
  • Restructuring:
    • When companies face financial difficulties, investment bankers play a crucial role in restructuring their operations.
    • This may involve advising on debt restructuring, bankruptcy proceedings, and other measures to improve the company’s financial health.
  • Financial Advisory:
    • Investment bankers provide a wide range of financial advisory services to clients.
    • This includes strategic financial advice on issues such as corporate strategy, financial planning, and risk management.
    • They may also conduct valuations of companies and assets for various purposes such as mergers and acquisitions, IPOs, and litigation support.

In essence, investment bankers act as intermediaries between companies and investors, facilitating financial transactions and helping their clients achieve their financial goals. They play a vital role in the global economy by driving capital flows, facilitating corporate growth, and contributing to economic development.

What is the Qualification of Investment Banker?

The given below are the points on the investment banker qualifications.

  • Strong Academic Background: A strong academic foundation is crucial. A bachelor’s degree in finance, economics, accounting, or a related field is preferred. Top-tier universities are often favored by investment banks.
  • Excellent Grades: Consistent high grades (GPA) throughout your academic career are essential. Investment banks seek individuals with strong academic performance.
  • Quantitative Skills: Proficiency in mathematics, statistics, and financial modeling is critical.
  • Analytical & Problem-Solving Skills: Investment banking demands strong analytical and problem-solving abilities to evaluate complex financial situations and develop effective solutions.
  • Communication & Interpersonal Skills: Excellent written and verbal communication skills are vital for interacting with clients, colleagues, and senior management. Strong interpersonal skills are essential for building relationships and working effectively in teams.

Who is Eligible for Investment Banking?

The given below are the investment banker courses and training: –

  • Undergraduate Degree: A bachelor’s degree in a relevant field (finance, economics, accounting) is the foundation.
  • Master’s Degree (Optional but Advantageous): An MBA from a top-tier business school can significantly enhance your career prospects.
  • Professional Certifications: Consider pursuing relevant certifications such as the Chartered Financial Analyst (CFA) or the Financial Risk Manager (FRM) to enhance your credentials.
  • Internships: Internships at investment banks or related financial institutions provide invaluable practical experience and networking opportunities.
  • Training Programs: Many investment banks offer training programs for new hires to develop essential skills and knowledge.

Investment Banking Jobs

Here’s a breakdown of common investment banking jobs with estimated monthly salary ranges in Indi

Job TitleMonthly Salary (INR)DescriptionTop Companies
Mergers & Acquisitions (M&A) Analyst100,000 – 200,000Involved in all phases of M&A deals, including financial modeling, market research, and due diligence.Goldman Sachs, JP Morgan Chase, Morgan Stanley, Citigroup, Barclays, Credit Suisse, Avendus Capital, Kotak Mahindra Capital, ICICI Securities, Edelweiss
Equity Capital Markets (ECM) Analyst80,000 – 180,000Assists in IPOs, secondary offerings, and other equity-related transactions, conducting research and preparing presentations.Goldman Sachs, JP Morgan Chase, Morgan Stanley, Citigroup, Barclays, Credit Suisse, Avendus Capital, Kotak Mahindra Capital, ICICI Securities, Edelweiss
Debt Capital Markets (DCM) Analyst80,000 – 180,000Supports bond issuances, loan syndications, and other debt financing activities, analyzing credit risk and market conditions.Goldman Sachs, JP Morgan Chase, Morgan Stanley, Citigroup, Barclays, Credit Suisse, Avendus Capital, Kotak Mahindra Capital, ICICI Securities, Edelweiss
Investment Research Analyst60,000 – 150,000Conducts in-depth research on companies and industries, producing reports and making investment recommendations.Motilal Oswal, HDFC Securities, ICICI Securities, Kotak Securities, Edelweiss Securities, PhillipCapital, Nomura, CLSA
Sales & Trading Analyst80,000 – 180,000Executes trades on behalf of clients, manages trading portfolios, and provides market analysis.Goldman Sachs, JP Morgan Chase, Morgan Stanley, Citigroup, Barclays, Credit Suisse, Kotak Securities, ICICI Securities, HDFC Securities
Project Finance Analyst70,000 – 160,000Analyzes and structures financing for large-scale infrastructure projects, assessing risk and feasibility.ICICI Bank, HDFC Bank, Axis Bank, SBI, IDBI Bank, IIFL, Edelweiss
  • Mergers & Acquisitions (M&A): Advising companies on mergers, acquisitions, and divestitures.
  • Equity Capital Markets (ECM): Assisting companies in raising equity capital through initial public offerings (IPOs) and secondary offerings.
  • Debt Capital Markets (DCM): Advising companies on raising debt capital through bond issuances and other debt financing instruments.
  • Investment Research: Conducting in-depth research on companies and industries to provide investment recommendations.
  • Sales & Trading: Executing trades on behalf of clients and managing trading portfolios.
  • Project Finance: Structuring and financing large-scale infrastructure projects.

Investment Banker Salary in India Freshers

The given below us the investment banker in salary in Indi –

  • Freshers: Entry-level investment bankers in India can expect to earn base salaries ranging from ₹10 lakhs to ₹25 lakhs per year.
  • Senior Investment Bankers: Experienced investment bankers in India can earn significantly higher salaries, often exceeding ₹50 lakhs to ₹1 crore per year.
Job TitleMonthly Salary (INR)Description
Investment Banking Analyst40,000 – 80,000Entry-level position involved in supporting senior bankers in various aspects of M&A, ECM, DCM, and other investment banking activities. Responsibilities may include financial modeling, market research, due diligence, and preparing presentations.
  • Salary Range: This is an estimate based on Glassdoor data and may vary significantly depending on factors like the specific bank, location, individual performance, and market conditions.
  • Top Companies: This list is not exhaustive and represents some of the leading investment banks in India.

Key Considerations:

  • Freshers: Entry-level salaries for investment banking analysts in India typically range from INR 40,000 to INR 80,000 per month.
  • Career Growth: Investment banking offers potential for rapid career advancement with strong performance and dedication.
  • Work Culture: The investment banking industry is known for its demanding work environment, long hours, and intense pressure.

This table provides a general overview of Investment Banker salaries for freshers in India.

Investment Banker Salary Abroad

 The given below is a table with investment banker salary abroad : –

  • Freshers: Entry-level investment bankers in major financial centers like New York, London, and Hong Kong can earn base salaries ranging from $80,000 to $150,000 per year.
  • Senior Investment Bankers: Experienced investment bankers in these locations can earn significantly higher salaries, often exceeding $500,000 per year, including bonuses.

The table given below shows tha salary In INR . These are approximate conversions and can fluctuate based on exchange rates.

RegionCountryEntry-Level Salary (INR)Mid-Level Salary (INR)Senior-Level Salary (INR)
North AmericaUSA6,740,000 – 9,520,00011,880,000 – 27,650,000Over 79,000,000
EuropeUK4,725,000 – 6,600,00014,040,000 – 23,400,000Over 56,250,000
AsiaHong Kong6,750,000 – 11,475,00011,475,000 – 23,925,000Over 23,925,000
AsiaSingapore5,025,000 – 8,400,0008,400,000 – 16,800,000Over 27,975,000
Middle EastUAE6,075,000 – 12,150,00020,250,000+Over 40,500,000
AustraliaAustralia4,500,000 – 7,500,0009,900,000 – 17,400,000Over 49,875,000

Senior Investment Banker Salary in India

Salaries for Senior Investment Bankers in India can vary significantly based on factors like:

  • Experience: Number of years in the industry and specific roles held.
  • Company: Prestige and size of the investment bank (e.g., Goldman Sachs vs. a boutique firm).
  • Location: Salaries in major financial hubs like Mumbai and Delhi may be higher.
  • Specialization: Areas like M&A or Equity Research often command higher salaries.
  • Individual Performance: Bonuses and commissions can significantly impact overall compensation.

The Salary Range of a Senior Investment Banker is given in the form of a table. The salaries are taken from glass door website for providing authentic information.

Senior Investment Banking RoleBase Salary Range (INR per annum)Total Compensation with Bonuses (Potential)
Vice President (VP)₹30,000,000 – ₹60,000,000₹50,000,000 – ₹100,000,000+
Director/Executive Director₹60,000,000 – ₹100,000,000+₹80,000,000 – ₹150,000,000+
Managing Director (MD)₹100,000,000+₹150,000,000 – ₹ Several Crore

What are some Important Exams for Investment Banker?

 The given below is a table showing various important exams an investment banker  can crack inorder to get a fulfilling career in Investment banking.

Exam NameDescriptionEligibility Criteria
Chartered Financial Analyst (CFA)Globally recognized credential covering investment analysis, portfolio management, and ethical conduct.Bachelor’s degree (or equivalent) OR be in the final year of a bachelor’s degree at the time of registration OR four years of qualified professional work experience OR a combination of work/college experience totaling four years.
Certified Public Accountant (CPA)Focuses on accounting principles, auditing, and financial reporting.Varies by state in the US; generally requires a bachelor’s degree, 150 semester hours of college credit, and passing the Uniform CPA Examination.
Chartered Accountant (CA)In-depth knowledge of accounting, auditing, taxation, and financial management.Varies by country; typically requires completion of a rigorous professional program, passing multiple exams, and fulfilling work experience requirements.
Financial Risk Manager (FRM)Focuses on risk management principles.Bachelor’s degree or equivalent and professional experience in financial services.
Professional Risk Manager (PRM)Another certification in risk management.Typically requires a bachelor’s degree and professional experience in risk management or a related field.
Chartered Alternative Investment Analyst (CAIA)Specializes in alternative investments like hedge funds and private equity.Bachelor’s degree or equivalent and professional experience in the investment industry.

Frequently Added Questions(FAQs)

 1. How much do investment bankers get paid in India?

Investment banker salaries in India vary significantly based on factors like experience, role, company, and location. Entry-level analysts typically earn between INR 8-12 lakhs per annum, while senior roles can exceed INR 1 crore.

2. Who earns more: CA or Investment Banker?

Earning potential varies. Investment bankers, especially at senior levels, often have higher earning potential due to bonuses and performance-based incentives. However, both professions offer lucrative career paths.

3. What is the basic salary of an Investment Banker in India?

Entry-level investment bankers generally earn between INR 8-12 lakhs per annum as a base salary.

4. What is the salary of an RBI Investment Banker?

Salaries at the Reserve Bank of India (RBI) are competitive and include a comprehensive benefits package.

5. What are the typical bonus structures for investment bankers in India?

Bonus structures vary widely and are often tied to individual and team performance, deal flow, and overall firm profitability. Bonuses can significantly impact total compensation.

6. Do investment bankers in India receive other benefits besides salary?

Yes, many investment banks offer competitive benefits packages that may include health insurance, retirement plans, stock options, and other perks.

7. How does the cost of living in different Indian cities impact investment banker salaries?

Salaries may vary depending on the cost of living in different cities. Investment bankers in major metropolitan areas like Mumbai, Delhi, and Bengaluru may generally receive higher salaries to compensate for the higher cost of living.

8. What are the typical career progression paths for investment bankers in India?

Typical career progression paths include Analyst, Associate, Vice President, Director, and Managing Director. Advancement is based on performance, experience, and contributions to the firm.

Conclusion

A career in investment banking offers a challenging and rewarding path for ambitious and driven individuals. By pursuing a strong academic background, developing relevant skills, and gaining valuable experience, you can increase your chances of success in this competitive field. This Amrita AHEAD article has cavered all topics regarding ,how to become investment banker,investment Banker qualification,investment banker course,investment banker jobs,investment banker salary for freshers and finally investment banker salary in abroad.This Amrita AHEAD article has covered all topics ranging from very general question like  what is investment banking then to who is an Investment Banker is  and eventually to roles of an investment banker,investment Banker qualification, investment banker jobs, investment banker salary for freshers,investment banker salary abroad, Senior Investment Banker Salary in India and at last a table of  important exams for an investment banker.

You May Also Like:

  1. Proven Study Tips for Competitive Exams: A Comprehensive Guide
  2. Professional Courses after Graduation
  3. Difference Between UG and PG- Top Courses, Salary
  4. Digital Gujarat Scholarship: Overview, Status, and Last Date
  5. UP Scholarship  2024-2025: How to Apply—Pre-Matric and Post Matric Scheme
Apply Now

Share this story

Admissions Apply Now