Careers

Careers in Investment Banking

Investment banking (i-banking) is undoubtedly the preferred career option for graduates from the country’s top business institutes. The job requires excellent analytical skills. You will also have to work for long hours.

The job

Investment banking is all about providing services such as buying, selling and trading securities, managing corporate assets and giving advice to companies. Investment bankers manage corporate finances, takeovers and mergers and acquisitions. They also do banking for governments, institutions and companies. Apart from this, investment bankers engage in securities trading in equity, bonds or derivatives and offer brokerage and distribution facilities.

Required skills

MBA is the preferred qualification to become an investment banker. You must have excellent people skills. Your clients need to understand the ideas that you communicate, so superior communication skills are a must. Investment bankers often have to work under stressful conditions. So it is important that you are capable of working under pressure. Quantitative skills are also required. Applicants should have knowledge in calculus and differential equations. Courses in areas such as options, pricing or bond evaluation are also recommended. Accounting skills are valuable as the job involves analysis of numbers.

Training

There aren’t any institutes in India which teach specific skills required for i-banking. Since the competition is cut-throat getting a foot-hold in the industry is tough. The selection process often involves case studies where applicants are asked to solve problems creatively.

Students pursuing their MBAs can do internships at i-banking firms during holidays where they get a basic idea of the nature of the job. New interns with little or no work experience start off as analysts at i-banking firms. Basically an analyst has to network, observe and learn. The position involves working for long hours but is a good way to learn about the field and meet people you will be working with later. Much of the learning would be on-the-job and there will be opportunities for global travel.

Pay packet

One of the best things about a job in i-banking is the money. Starting salaries should be around Rs 7.5 to Rs 8 lakh a year. As you gain more work experience, your pay packet will get extremely attractive too. For aspirants who want to go abroad, popular places for i-banking include New York, London, Tokyo and Singapore.