Scenario of Investment Banking in India
Current scenario of Investment banking in India is itself very wide. Let’s start with simple question, what is investment banking? What are the various functions of Investment Bank? So, generally investment bank is a financial institution provides bundle of services to its clients.in other words, An Investment bank is financial intermediary assist to Corporate, HNI’s (High Net worth Individual) and companies for raising capital. Also an Investment bank provides advisory services like in Merger & Acquisition. Mainly companies are required cash in order to expand their businesses; Investment Banks help these by issuing sell securities (debt and equity) to the investors. These securities can be stocks, bonds, debt etc.
Investment bank not only provides capital raising services but also offers advices on mergers and acquisitions advises, trading of securities, custodian services, AMC and many other to the companies.
Investment Banking in India – Services Offered
Investment banks provide services in following areas:
Investment Banking in India – The world’s emerging talent destination
There are various reasons for multinational investment banks come to India. Major reason behind investment banks invest into India is its Lower operating cost model.
- Reducing operating costs of an investment banks because much cheaper workforce are available than US, UK and other countries.
- Also in India various Indian companies like WIPRO, SYNTEL; TCS offers an IT, ITES and KPO services i.e. back office services for an Investment bank.
Big foreign players in Indian Investment banking sector –
Many foreign investment banks are set up in India, so the investment banking sector in India becomes more competitive. Following are list of top investment banks in India.
- ABN-AMRO Bank
- The Bank of New York Mellon
- BNP Paribas Bank
- Citi Bank
- Deutsche Bank
- JPMorgan Chase Bank
- Goldman Sachs
- Morgan Stanley
List of Top Indian Investment Banks
- Bajaj Capital
- ICICI Securities Ltd
- Kotak Mahindra Capital Company
- SBI Capital Markets
- Yes Bank
Investment banking in India – Career Opportunities
Investment banks recruit highly-motivated and talented peoples from various backgrounds. There are plenty of opportunities available for Undergraduates, MBAs and Other Master Degree Holders. Many Investment banks offer summer internships for MBA’s and also for undergraduates they have many programmes. If you have talent, attitude and you are looking for high salary job, and then you should think seriously to make career in investment bank. Firstly you need to understand their business.
In current scenario in India, there are varieties of openings in investment banks. Mainly European countries have large requirements professional investment bankers. Large investment banks like Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, Citigroup, and Credit Suisse outsource their works to India because of talented workforce in lower cost.
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Following are the skills which are required for an investment banks
- Analytical Ability
- Fluent communication in English
- Good academic Record
- Problem Solving
- Strong analysis and forecasting skill
- Should have in Depth knowledge about subject
Tips for Investment Banking Interview
- Research your own and be prepared
- Practice makes you perfect.
- Do R & D about the firm.
- Always dress professionally
Sample Question for Investment Banking Interview in India
You should be prepared to answer the following questions during an investment banking interview.
- Walk me through your Resume/CV?
- What do you understand by an Investment Banking?
- What is the work of an Investment Bankers?
- Why do you want to be an investment banker?
- What do you know about us?
- Tell me about your strengths and your weaknesses.
- What is the biggest challenge that you have had ever faced?
- What is your biggest achievement?
- Give us an example of a failure you’ve experienced and how you’ve handled it
- Tell me something about the current market scenario.
- What motivates you at work?
- Describe your leadership style.
- What is your greatest accomplishment?
- Tell me about something creative that you’ve done.
- Why should I hire you?
Following are some Investment Banking technical question:
- What do you understand by the term Financial Model?
- What are the two largest ways companies can play with their earnings?
- Describe valuation methods.
- Explain me DCF valuation.
- Weighted Average Cost Of Capital (WACC)?
- What do you understand by the term “deferred tax asset”?
Investment banking in India – Salaries
Source – payscale
Right Courses in investment banking
If you are looking for a career in investment banking then you need to improve yourself. Enhance your knowledge using various online study materials. There are many online courses in investment banking, choose right course from them. It’s always beneficial to learn financial model because it will help you at workplace. You may want to look at
You can learn more about Investment Banking here.