Future of Investment Banking in India?
Across the world, Investment banking has entered a volatile phase owning to economic uncertainties. But India has a growing economy. How does the future of investment banking look in India?
Started by Neha Agarwal
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Most of the firms in India are foreign based MNCs and they often maintain middle office and back office and very few operations take place in the front office.
From the job perspective, getting into middle office will give you good job and growth, however, getting into front office would be a jackpot which is pretty much hard to get.
From a company perspective, there are already quite a lot boutique investment banking companies alongside big firms like Golden Sach, J.P Morgan, etc. With lots of potential startups and foreign investments coming in as a part of make in India projects, in few years the necessity of investment banking compa...more -
Commented by
NITIN DESHMUKH Yard by yard its hard, but inch by inch its | Scholar-Level 17
8 years agoAs Indian economy is growing at a great pace (7.6 percent GDP growth) there are a lot of opportunities for investors to invest in the Indian market. India needs to become a self-sustainable investor in the manufacturing sector which will result in the start of numerous projects with huge investment requirements (like Smart City, Railways, 5G telecommunication network in near future). To cater this investment banks will play a crucial role. A lot of NPAs (Non-Performing Assets) and bad debts need to be kerbed which increases demand for equity and risk analysts. So, India is having a great potential growth for investment banks. -
Investment Banking in India offers a wide scope of work, if you are good with numbers and are interested in finance. It provides a great platform to build a career that is both promising and satisfying. You get to work in some of the best corporate environment and also work with people from other parts of the world.
The core line of work requires a lot of analytical skills and communication, talking to clients, agents, brokers, traders from all over the world will give you a nice exposure to hone your communication skills. The job provides the chance to work using the cutting edge technologies and international standard work culture.
Eve...more -
Investment banking has always been a highly cyclical business, growing when the markets grow, shrinking when they shrink. But, a combination of regulation, technology and investment suggests that, as stockbrokers have traditionally whispered in boom times.
Over the past few years, the number of banks with aspirations to become one of the world's top three investment banks has shrunk from 10-15 to 3. There are expected lower systemic risks. Fewer companies are going public now, reducing the need for IPOs, another once-lucrative function performed by investment banks. -
The last 5 years have been the worst period of time for Investment Bankers, in India and across the world as industry has been not investing in core growth given the overall economic climate. All my IB friends are barely surviving in clinging to their jobs. With the recent downward revaluation of Ecommerce firms like Flipkart and Zomato, the sector which showed promise is also struggling.
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It's gonna be the most premium sector, but difficult to get in. I would advise you to go fr internship for experience first and then go for some courses like FRM, CFA. High paying jobs with lots of learning.
Even Indian banks like Kotak and HDFC has evolved in this sector. -
From my point of view Investment banking has a good future in INDIA because India is a growing economy.so that here it will not only get good growth also get good feedback & customer.because today entrepreneurship is growing in India. yes no doubt it has more difficulties but also has better return. -
I would like to invite harenderbisht Arvind Joshi245 Arun Dev Govind_S to share expertise. -
A student planning a career in Investment Banking in India can take up the job profiles listed below:
Security analyst
Foreign exchange trader
Bank manager
Financial analyst
Financial advisor
Research analyst
Equity researcher
Investment banking analyst -
Investment Banking is a very exciting but a difficult career path. With high pay and enormous bonus comes a very hectic work schedule where you will have to put in 14 hours of work a day and sometimes even more. It also requires strong numerical understanding and an eye to detail. To become a successful investment Banker you need to have a sound numerical and financial knowledge. Working on software platforms like Excel, PowerPoint etc is a prerequisite.
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According to reports, the future of investment banking in India looks decent. However, it may witness a set of new investment guidelines. Considering the after-effects of the economic recession in the US or the global slowdown for that matter, the Indian policy makers might take a staunch step in formulating stringent norms for investment banking services in the country. This might result in:
- Better risk management
- Restrain companies from getting into fraudulent and unethical means of trading
- Ensure recovery of their profits
- Short-term funding to equalize assets and liabilities -
Investment banks offer a plethora of financial intermediary services to their clients such as underwriting, raising funds in capital markets by issuing equity or debt securities and also facilitating mergers and acquisitions, etc.
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