Investment banking is one of the most popular terms in the financial sector. Many experienced professionals and graduates nowadays aspire to work as investment bankers. It is one of the most difficult, profitable, and well-paid careers in the world. It is a demanding profession that necessitates a top-tier finance degree as well as strong analytical, critical thinking, and quantitative abilities. If you have strong analytical skills and a strong willingness to work in Investment Banking, you may thrive with the right knowledge and education. In this blog, we will discuss how to become an investment banker in India.
What is an Investment Banker?
To begin with, we will first discuss what an investment banker is. An investment banker is a professional who works for a financial institution and is primarily responsible for raising funds for businesses, governments, and other organisations. He offers financial guidance during major financial transactions such as mergers and acquisitions. He also offers advice on whether to issue financial assets such as bonds or stocks, how many should be issued, and what price each security should be established at. By identifying the risks connected with a project, an investment banker may assist their clients save time and money.
How to Become an Investment Banker?
Now, we will discuss how to become an Investment Banker. If you are interested in pursuing a career in investment banking, the following points may help you:
Job Roles
The standard investment banking career ladder consists of the following steps:
- Investment Banking Analyst
- Investment Banking Associate
- Vice President
- Senior Vice President
- Managing Director
Eligibility to Become an Investment Banker
To become an investment banker in India, you must have completed your higher secondary education (10+2) with more than 50% from a recognised board. Any person who has a good understanding of financial assets and investments can optionally become an investment banker. To gain admission to specific universities for your graduation or post-graduate degree, you may need to score well on a state or national competitive entrance exam. A three or four year bachelor’s degree is required to gain an entry-level position with an investment bank but MBAs and CFAs are most common for higher levels.
Internships are a great opportunity to gain a sense of what it’s like to work in Investment Banking and to build a professional network. It can aid candidates if they are well-versed in investment banking information. When considering Investment Banking as a career option, connections are extremely important.
You may receive a job offer immediately following your internship, via a campus employment interview, or by applying for open positions with investment banks and financial advisory firms.
Skills Required for Investment Banking
Analytical Skills
For making a career in investment banking, you must strengthen your analytical skills. Working on research and financial models necessitates a sharp analytical mind capable of swiftly learning and adapting to new situations.
Mathematical Skills
This is one of the most important skills for getting into investment banking. If you can’t do basic maths, then the IB industry is not the right place for you.
Basic Knowledge of Finance
Finance expertise is required to pass any interview for a finance position or one in a related field. An Investment Banker is responsible for all facets of finance, and candidates must be well-versed in all of them, especially in three basic statements: Profit & Loss Account, Balance Sheet, and Cash Flow Statement.
Basic & Advanced Ideas of Powerpoint and Excel
The basic and advanced ideas of both these tools is mandatory for all investment banking aspirants because 80 percent of investment banking jobs involve dealing with Excel and PowerPoint presentations.
Financial Modelling is a Plus
It is preferable to have a strong understanding of financial modelling in order to pursue a career in investment banking. Investment bankers work on models day in and day out and are always on the lookout for candidates who can create models from the ground up.
Top Investment Banking Colleges in India
For your convenience, we’ve compiled a list of the best IB colleges in India:
- Indian Institute of Management, Bangalore
- Indian College of Business, Hyderabad
- Bharathiar University, Coimbatore
- Indian Institute of Management Ahmedabad, Ahmedabad
- Indian Institute of Management, Kozhikode
- MICA, Ahmedabad
- School of Management Studies, Delhi
- Shaheed Sukhdev College of Business Studies, Delhi University
- Keshav Mahavidyalaya, Delhi University
- Lala Lajpat Rai College of Communication & Economics, Mumbai
