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Scope Of Investment Banking As A Career in India

If we have to realistically analyze, every stream is competitive to some extent. But rest assured, because it doesn’t reduce your chances of excelling. Investment banking is one such domain that provides an individual with ample opportunities for growth and success but instead requires professional skills, knowledge and an ability to commit to long working hours. Are you an aspiring Investment Banker who’s looking for prospects in this domain? Then, this article is for you. We will be discussing the scope of investment banking and what prospects it holds for the future.

WHAT IS THE SCOPE OF INVESTMENT BANKING AS A CAREER-compressed

Table of Contents:

  • What does Investment Banking mean?
  • How did Investment Banking begin?
  • The scope of Investment Banking through Industry Trends
  • How popular is Investment Banking as a career?
  • Investment Banking Demographics in India
  • Expected Salaries for Investment Bankers in India
  • For A Better Scope of Investment Banking as a Career Check these Top Institutes
  • Frequently Asked Questions

Let Us Discuss, What Investment Banking Means

First start by considering, what would happen to important financial transactions if no one is ready to handle them professionally. That is when Investment banking plays a major role. Big firms use investment banking to safely manage their finances and conduct critical financial operations that keep the economy functioning.

Aside from finances, Investment Banking works with various other activities such as Mergers and Acquisitions and Underwriting services. With M&A Investment bankers deal with the management of major organizations, and corporations which allow such massive companies to expand or downsize. While Underwriting services ensure the payment of cash in the event of potential financial losses.

How Did Investment Banking Begin?

Contrary to popular belief, Investment banking is not a modern concept but has its origin much earlier in history. The origins of investment banking, commonly understood to refer to the funding of long-term capital requirements, began with medieval trade roots. Since then, it evolved from merchant bankers in industrialised economies to what it is today. Over time between nations, a range of institutions have provided investment banking services.

In India, Investment Banking dates back to the 19th century, when European merchant banks opened their first trading houses in the area. Since then, non-Indian International banks have dominated the nation’s merchant banking and investment sectors. The number of merchant banks increased to around thirty by 1980. On the other hand, commercial banks and other financial institutions expanded quickly, resulting from this boom in the financial sector.

Learning investment banking from professional sources is a necessary step for aspiring investment bankers. Nowadays, Investment banking courses with placement opportunities are highly in demand and many universities have resorted to providing such services, in the most convenient ways. A standard investment banking certification course should train the student with the skills necessary for various job roles in this domain.

If You Are Interested in Investment Banking Course Guidance, You Must Check This:

The scope of Investment Banking As Per The Industry Trends:

The surge of technology caused this industry to change quickly. Therefore, the adoption of such technology must happen quickly enough to guarantee all possibilities. Courses in this field will equip you to handle this industry’s shifting trends and perform well at work. Below are some of the latest trends in the investment banking industry.

  • Data Integrity and Analytics – There is an abundance of data in this field and the ability to influence the future of investment banking is significant. Because customer data analysis enables companies to make strategic decisions, it steers the business in the right direction and transforms the retail banking industry. Thus the scope of investment banking lies in ensuring the data remains trustworthy and reliable for making important business decisions.
  • Automation and AI – Investment bankers can allocate their time more effectively, all credit to the advanced tools. Investment bankers have made enormous profits because monotonous and time-consuming duties can be delegated to artificial intelligence. Innovative methods are being introduced through the investment banking certification courses so that students get used to the latest developments.
  • Agility of Enterprise – Students in the investment banking field can work with new business models that emerge from the rapid advancement of technology. You can adapt quicker to the technological trends than before and develop a competitive advantage over others irrespective of size. This is because the future of investment banking predicts business agility to become crucial, riskier cycles and banks growing smaller in size.
  • SPAC – Likewise referred to as Special Purpose Acquisition Companies, have created a solid foundation in the investment banking sector. Simply put, it’s an Initial Public Offering (IPO) shell whose primary goal is to raise money. The final goal is accomplished when a company merges with another existing business. Many investment banking courses with placement are equipped with the latest technological knowledge for your benefit.
  • Cyber Crimes and Frauds – You might have experienced such fraudsters first-hand, but even without that cyber crimes and financial risks are a persistent issue. Dynamics in the economic environment are causing scammers to come up with new ways to commit cybercrimes. These are legal penalties for such cases, however, for such complex crime scenes traditional approaches are ineffective. The latest advancements in technology, enable investment bankers to protect their clients, complete financial security, and make online transactions safer.
  • Capital Markets – As you can understand, using technology to your advantage has become the norm in the workplace. The scope of investment banking reaches out to influence how businesses use capital. Capital Markets are a part of the financial system facilitating transactions between sellers and buyers. Therefore in Investment banking, automation is used to reduce capital expenses, so that operational efficiencies can be achieved.
  • Emerging Markets – A market that resembles a developed market, but falls short of meeting the set requirements is referred to as Emerging Markets. As per LinkedIn’s article, the economic way of life is significantly impacted by globalization. The scope of investment banking and emerging markets in modern society, have expanded the investor base to acquire more capital. These markets are unique in their growth and development dynamics while being less financially mature than developed nations. For example: India, together with seven other countries, is considered the largest emerging market today.

How Popular is Investment Banking as a Career?

The scope of investment banking as a career has a very promising future. In context to recent times, it has risen in popularity not just in India, but everywhere else as well. It is one of those career paths where you can make a solid living with an entry-level position as well. Certain benefits of taking up investment banking as a profession are listed below:

  • High salary – The banking and finance industry, like science, has the potential to earn you more income as you progress. You’ll get numerous chances to work on your communication skills and meet new people, throughout your professional journey. Therefore, investment banking could be your dream job, if you’ve wanted to work in a field that offers you enormous profits. All while keeping you updated on changing market trends.
  • Continuous growth and development – The investment banking industry can occasionally be demanding, and you may need to put in extra hours. Although, it should be noted that nothing worthwhile comes free of cost. You might need to put in a minimum of 80 hours a week, to increase your chances of promotion. Your abilities greatly improve your abilities and problem-solving skills by taking on different roles.
  • Ability to manage time – It is regarded as a skill necessary for anyone hoping to find employment. Attending priority chores will help you decrease your workload. You need to be well organized for such duties and responsibilities, as the future of the investment banking industry will require your time-management abilities. One way to get better results is by setting goals before the task at hand. A proper schedule helps you concentrate on moving forward more efficiently and quickly.
  • Attaining transferable skills – You are likely to learn some vital skills that apply to a variety of professions, such as research, analysis, problem-solving and communication. These are transferable skills that one can learn through investment banking internships. In the end, your abilities alone give you a competitive advantage in several businesses.
  • Networking – Building a network is a crucial life skill that can lead to achievement. Developing a solid professional network is just as important as completing their daily duties as an investment banker. Learning from senior colleagues is a great to enhance your professionalism, while you’re just starting in this sector. Thus, making excellent connections with coworkers or those in related fields in related fields is an excellent way to move forward in your career.

A case study on corporate professionals and their investment behavior towards Mutual Funds was conducted by Gaurav, Kunal et al. It revealed certain things like the market’s increasing competitiveness, where investors have access to a wide range of investment options. Of all investing options available, Mutual Funds are the most suitable for everyone. It offers individuals the opportunity to invest in a diversified portfolio, managed by specialists at a relatively low cost. A Mutual Fund is a kind of investment vehicle that enables investors to combine their resources to buy a variety of securities. Studies regarding the future of investment banking intend to investigate the elements of investment behavior.

Investment Banking Demographics in India

For most Indian students, the scope of investment banking has been centered on a  desirable career path. A few of the many other services that this field provides are restructuring, Capital market services, Custodian services, Corporate Finance, Syndication, Trading in securities, and Mergers and acquisitions. There are headquarters of numerous global corporations located overseas, including a few like Morgan Stanley, Citigroup, Goldman Sachs, and Lehman Brothers, while in the Boutique banking sector, indigenous banks compete with bigger banks. Among these participants are Ripple Wave, Veda Corp, and MAPE to name a few.

However, as money and liquidity flooded the markets, the investment banking industry sector developed a rival, aiming to scale new heights. The industry was negatively impacted by pandemic-related problems, which included declining share prices and dynamic financial rules. The Indian banking sector chose to flourish despite the pandemic. As per an article by (Poddar, Sumit 2023) the Indian market is predicted to grow by 6-6.5% in 2024 and by 5-7% over the next ten years, notwithstanding the bleak global outlook. It can be stated that India is likely to outperform other emerging markets as well as global markets, as the most desirable place to invest over the next ten years.

Some Predictions About the Scope of Investment Banking in India Are Listed Below:

  • Increased Economic Growth – In terms of economic growth, India has continuously surpassed other major economies over the years. With more than 1.4 billion people living in India, it has been a big domestic market with profitable investment opportunities. The dynamic and young labour force, growing middle class and increasing consumer purchasing power have bolstered the country’s GDP growth rate. A situation analysis illustrates the untrapped potential for achieving long-term growth and more economic formalisation. This is because, barely 6% of the population pays income taxes and only 6% participates in Digital commerce, despite the country’s enormous population.
  • A stable government and structural reforms – The Indian government has demonstrated a strong commitment to implementing structural reforms that promote growth and encourage investment. Because of schemes like GST and the Made in India initiative, business operations have been simplified and transparency has been enhanced. These investor-friendly measures and political stability provide a solid foundation for long-term growth.
  • Progress in Technology and Digital Transformation – To create inclusion and prevalence, India has embraced the digital revolution. With the increasing scope of investment banking, India is expected to have 8.9 billion digital payments and 10 million GST-registered businesses by last year. The incredible acceleration and transformation, it is attributed to India’s Digital Public Infrastructure which employs open network standards. As the emphasis is on digital transformation and innovation, India has established itself as a tech-savvy global leader. This in turn boosts small businesses and offers appealing investment prospects.

In the Context of Global Investment Banking Demographics:

The Covid-19 epidemic’s devastating impacts on the economy have resulted in significant setbacks for the banking industry recently. In the assessment of the world economy, the IMF predicted an uncertain future. It is brought on by the banking industry’s instability, growing inflation and the effects of Russia’s invasion of Ukraine. It is anticipated that global growth will be slowed from 3.4% in 2022 to 2.8% in 2023. There is expected to be an especially severe slowdown in growth for advanced economies.

Expected Salaries for Investment Bankers in India

As previously stated the scope of investment banking career in India is on the rise, which means aspiring investment bankers can expect better salaries even in fresher positions. To thrive in this massive domain, you should be informed of the potential incentives that will be offered. It is important to remember that incomes vary greatly among banks, as a result, knowledge of such things is necessary. Wages for entry-level bankers typically range between 2-50 lakhs, depending on the size and market position of banks. Big firms like Wipro, IBM and Morgan Stanley recruit investment bankers with high pay scales. Working with investment banks like Goldman Sachs and Morgan Stanley could earn you a payscale of INR 14 Lakhs to 15 Lakhs.

Check This Investment Banking Courses For Better Career Scope in Abroad:

For A Better Scope of Investment Banking as a Career Check these Top Institutes

Investment banking has huge potential in both online and offline professional courses. Some institutions that provide a top-quality curriculum for this field are discussed below:

1. IIM SKILLS

Since 2015, IIM Skills has provided its students with low-priced online courses in several subject areas. It’s an Ed-tech institution founded by Mr Vaibhav Kakkar, with the Content Writing Course before expanding into a leading provider of skill-based online courses. The courses are created after extensive research into industry trends. The faculty is similarly well-trained and skilled with cutting-edge technology.

As a student of IIM Skills, you can have access to a range of courses, each featuring interactive sessions or live classes. Moreover, after completing the course, Master Certifications are issued to students qualifying the minimum 50% mark.

An Overview of the Course –

This course is called the Certified Investment Banking Course and is paired with live interactive classes. Students are granted access to all its study materials and resources through their personalized LMS before the course officially begins. The well-structured curriculum and flexible schedule allow you to work in your spare time. It follows all recent trends and technology advancements so that students are up-to-date. The batches are fixed as per everyone’s suitability and the minimum aggregate to pass the exams is fixed at 50%.

  • Contact: 9580740740
  • Fees: 39,900 INR (extra 18% GST)
  • Duration: 3 months
Module 1MS PowerPointModule 5Technicals of Investment Banking
Module 2MS ExcelModule 6Different Marketing Collaterals
Module 3Financial System and MarketModule 7Technicals of Financial Modeling
Module 4Derivatives MarketModule 8Business Valuation

Syllabus –

  • Module 1: Microsoft PowerPoint
  • Module 2: Microsoft Excel
  • Module 3: Financial System and Market
  • Module 4: The Derivative Market
  • Module 5: Investment Banking Techniques
  • Module 6: Different Marketing Collaterals
  • Module 7: Financial Modelling and its technical side
  • Module 8: The Business Valuation

Other Professional Courses from IIM SKILLS

Contact Details:

+919580740740, [email protected]

2. The Wall Street School

Otherwise known as TWSS, is well-known and respected for its investment and finance-related courses. It was founded in 2009 by two highly skilled Chartered Accountants to give learners an opportunity for practical training. Throughout the years, the school expanded its networks and reached out to several students around the world, who have an interest in Accounting and Finance courses. Graduates from this institute have benefitted in their professional lives and witnessed their careers progress from junior to senior levels.

Overview of the Course:

The course is built on a solid technical foundation that is intended to prepare students for jobs. The Education firm offers these practical training sessions to give students the working experience. As a student, you’ll be presented with authentic case studies along with upgraded study materials. Over 180 hours of comprehensive teaching are conducted. Other than that, the institute features a one-of-a-kind system of transparent placements, where you are given the contacts of previously placed students.

  • Fees: 23,500 INR (+ GST)
  • Duration: 6 months

Syllabus –

  • MS Excel
  • Advanced MS PowerPoint and Excel
  • Income Expenses and Finances
  • Business Modelling
  • Trade Analysis
  • Transaction Analysis
  • Discounted Cash Flow
  • Merger Model
  • Leveraged and Unleveraged Buyouts

Few More Investment Banking Courses in India Near You:

3. IIM Indore

Being the sixth Indian Institute of Management after IIM Calcutta, this institute has been enhancing the scope of investment banking, since 1996. With its holistic approach to education, the institute helps its learners become future leaders. The institute’s functional skills and industrial experience help students train to have an open outlook.

Overview of the Course:

The course is loaded with project work, lectures, case study discussions, assignments and term papers. Every student taking the exams is required to achieve a minimum grade decided upon by the institute. The medium of course delivery is online and aside from that, students are offered several student benefits.

  • Contact: 7428290704
  • Fees: 4,79,100 INR (+ 18% GST)
  • Duration: 12 months

Syllabus –

  • Financial Reporting, Analysis and Valuation
  • Financial Management
  • Investments and Portfolio Management
  • Mergers and Acquisitions
  • Options, Futures and Derivatives
  • The Economic Environment
  • Spreadsheet Modelling for Finance

Frequently Asked Questions

Q) What is the Scope of Investment Banking Operations in India?

Investment banking operations provide various employment opportunities for potential aspirants. These could include entry-level clerical positions to top managerial positions. These employees are responsible for the efficient, accurate and risk-free clearing of bank transactions, for government or corporate customers.

Q) What is Investment Banking for Dummies?

It is a book on Investment banking, written by authors Robert Johnson and Matthew Krantz. The book provides investment banking basics to new learners in very simple terms, so that anyone can pick up and enjoy the read. The book has several icons and paragraphs, presenting a unique diversion from the traditional way of reading.

Q) What are some job roles for an Investment Banker?

The hierarchy of job roles in the investment banking career includes Analyst, Banking Associate, Vice President, Senior Vice President and Managing Director.

Conclusion:

We hope our blog on Scope Of Investment banking provides you with all the necessary information that guides you on the right track to successful career choices in the finance sector. Also, we have mentioned a list of the top institutes that we highly recommend you for investment banking courses.

I am Meghna Kanjilal, an Education honours graduate from Loreto College with a passion for reading books. I like being creative whether it's through writing or designing. I had an amazing opportunity to start my writing journey with IIM Skills and expand my knowledge in the Content Writing domain. Currently, I am working with IIM skills on their internship programme to enhance my skills and gain experience.

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