Investment banking is a highly lucrative and promising career option in the finance industry.
Because of the crucial role they play, investment bankers act as financial advisors to corporations and organizations – helping them raise funds through multiple avenues.
This includes issuing stocks, negotiating acquisitions, and arranging company sales.
Because of their expertise, the demand for investment bankers is on the rise, making it a highly sought-after job role.
In this post, we will explore the average salary of an investment banker in India, understand the factors affecting their salary, and explore related career opportunities in this field.
Let’s get started.
The Role of an Investment Banker
Investment bankers are financial professionals who specialize in providing expertise and guidance in financial transactions and services.
Some of these services include mergers and acquisitions, IPO releases, and company takeovers.
Investment bankers act as trusted advisors to large corporations, businesses, and sometimes even governments.
Due to their strong analytical skills and comprehensive understanding of complex financial transactions and capital raising, investment bankers are preferred and sought after by a lot of national and international companies.
Factors Affecting the Salary of an Investment Banker
There are a few factors that significantly contribute to the salary of an investment banker in India. Some of these factors are:
- Your skills: Investment bankers with specialized skills and expertise in areas such as financial modeling, valuation, and deal structuring are often in high demand. This also means that they are liable to get more salary in the long run.
- Experience: The level of experience you have plays a significant role in determining your salary as an investment banker. Entry-level investment banking associates can expect to earn an average of around Rs. 7-8 LPA in their first year, while experienced investment bankers who have worked their way up the ranks can earn anywhere between Rs. 12 LPA to Rs. 40 LPA or even more.
- Location: Based on where you work and find a job, your salary will be accordingly affected. The salaries you could receive in cities like Mumbai, Delhi, and Bangalore, won’t be the same as that of smaller cities.
- Company and Industry: The size and the growth of the company will also influence how much salary you receive. Investment bankers working in top-tier investment banks or in high-growth industries may earn higher salaries compared to those working in smaller firms.
Investment Banker Salary in India
The range of salaries that you’re liable to receive depends on where you are in your career.
The average salary of an investment banker is roughly around ₹12 LPA. In fact, A reputed company like JP Morgan pays an average salary of ₹22 LPA to its investment bankers with an experience of up to 4 years.
As you grow further in your career and enter more professional institutions, you will witness this salary increase.
Here’s a breakdown of salaries you could receive as an investment banker based on your experience levels:
Entry-Level Experience (1-2 years)
Investment bankers with entry-level experience can expect to earn an average salary of around Rs. 5-10 LPA.
The salary package for entry-level professionals may vary based on their skills, educational qualifications, and the reputation of the firm they join.
Mid-Level Experience (3-6 years)
For investment bankers with mid-level experience, the average salary ranges from ₹8 LPA to ₹24.8 LPA.
These professionals have gained valuable experience and expertise in financial transactions and are often involved in managing complex deals.
High-Level Experience (7+ years)
Investment bankers with high-level experience, typically having 7 or more years of experience, can earn an average salary of ₹20 LPA, with the potential to earn up to ₹40 LPA or even more.
These professionals have reached senior positions in their careers and have a wealth of knowledge and expertise in the field. The better your experience, the more demand a candidate will have with better investment banking companies.
Investment Banker Salary Based on Location
The location of a job can significantly impact the salary of an investment banker in India.
Since most top companies that hire investment bankers are based in metropolitan cities, we will have an overview of these locations.
- Mumbai: Investment bankers in Mumbai, often considered the financial capital of India, can expect higher salaries compared to other cities. The higher cost of living and the concentration of financial institutions contribute to higher salary packages in Mumbai. Companies like Axis Capital and JP Morgan who are located in Mumbai would be a great fit for professional investment bankers looking for a job.
- Delhi: Investment bankers in Delhi also enjoy competitive salary packages, thanks to the presence of major financial institutions and the city’s status as the capital of India. Delhi also houses the Big4 companies that offer financial advisory and related opportunities.
- Bangalore: Bangalore is growing exponentially in the financial sector which is why it has seen a rise in the demand for investment bankers. Salaries for investment bankers in Bangalore are competitive, reflecting the city’s growing importance in the financial industry.
- Chennai: Although Chennai isn’t as prominent as other major Indian cities, it still has plenty of opportunities for investment bankers. The city is home to Citi Bank, Fidelity Investments, and other major asset management companies.
Conclusion
Investment bankers play a crucial role in raising funds and facilitating financial transactions.
As you progress in your career, your skills, location, and the growth rate of the company will influence your salary as an investment banker. It’s important to consider these factors and evaluate the overall financial benefits and growth opportunities when pursuing a career in investment banking.
Even though it’s a challenging career, investment banking could be highly rewarding, especially as you develop more skills and expertise in this field.
To get started with a comprehensive route to becoming an investment banker, you can start your journey with our Investment Banking Training and Certification course. This program will help you acquire the right skillset needed to enter investment banking jobs.
