14 MAY 2012 ARTIKA SHAH

Every young MBA student or aspirant wants to become an investment banker today. The
investment banker earns fat pay checks and has a lifestyle that is envied by many. The Wall-
Street is filled with high-energy, hardworking and young investment bankers who spend hours
in front of computers, poring over financial statements and also churn out spreadsheets by the
pound. The investment banker’s job is not a purely nine-to-five job and involves late-night
hours and never-ending client demands. Thus, only those individuals who are armed with
exceptional mental and emotional prowess and untiring work stamina are best suited for it. To
have a good career in investment banking, let’s learn more about this industry in depth.
What is investment banking?
Investment banking is a field of banking that helps companies in buying funds. It is a field which
offers advice for a wide range of dealings a company might engage in. The investment banks
provide a large number of finance-related services like underwriting, raising capital for
companies by issuing equity or debt securities and facilitating mergers. The investment banking
companies are also involved in doing a large amount of consulting. An investment bank acts as
a mediator between the investor and issuer while raising capital for a firm. The capital raised
can come from private investors or from pools of capital obtained within the public markets.
The capital obtained from the public markets is normally through an IPO.
Qualifications required for becoming an investment banker
To become an investment banker, a bachelor’s degree in business administration or related
field like finance is required. There are a huge number of specializations available with a MBA
degree including MBA in marketing and finance. This high-stake profession demands
professionals having vast knowledge of banking and finance. As there is a huge competition for
jobs, the students are advised to complete an internship before graduating. The internships
allow students to work within an investment bank, analyze portfolios and assets using valuation
models. These positions also help students to sharpen their analytical skills and also network
within the field. These networking connections made during internships can help the wannabe
investment bankers to get a job after graduating.
Top colleges for career in most experienced professionals investment banking
Having a career in investment banking is a lucrative and popular career option for the youth of
today. The courses in the field of investment banking are conducted at undergraduate as well
as postgraduate levels. Some institutes also offer diploma and certificate courses. Some of the
prominent institutes of India and abroad offering training and education in the area of
investment banking include:
 IIM Kolkata
 Indian Institute of Management, Ahmedabad (IIM A)
 Indian School of Business, Hyderabad
 Jamnalal Bajaj Institute of Management Studies, Mumbai
 S.P. Jain Institute of Management Studies, Mumbai
 Narsee Monjee Institute of Management Studies, Mumbai
 Symbiosis Institute of Management, Pune.
 Boston College, Boston
 Harvard Business School, Cambridge
 Princeton University, New Jersey\
 Stanford Graduate School of Business, Stanford.

Career prospects
Having a career in investment banking is really awesome. The best part of this field is that it
offers best pay package and benefits. It offers a platform for young professionals to progress in
the banking industry. There are different types of investment banking jobs depending on the
functions of any banking or financial institutions. One area of investment banking, namely
corporate finance is an emerging area that attracts a lot of people both fresh graduates and
those who are already there in the banking sectors. The investment bankers are also found in
other areas like international and institutional sales, retail banking and structured finance,
private and public investment banking systems, analysis banking, and also retail and
commercial investments. This area of banking is very competitive and the most experienced
professionals are likely to get higher paid jobs.
Remuneration earned by an investment banker
The fresher or less experienced professionals will be able to earn anywhere between Rs 20,000
to Rs 30,000 per month. Young MBAs from reputed colleges and institutes can expect to earn
around Rs 9 lakh per annum. A professional with an experience of about say 5-6 years, can earn
Rs 12 lakh-1 crore per annum depending on the firm one works for.
As an investment banker moves forward throughout his career and becomes involved in many
projects, he or she becomes able to quickly apply industry norms, forecasts, typical
performance benchmarks and trends.
2. Investment banking in India: Institutes, courses and career options
By Manisha Verma

Investment banking as a career is very challenging, exciting and promising. There are many
institutes in India which offer Investment banking programmes in India. The field is a very
challenging. These institutes offer programmes in investment banking at undergraduate and
postgraduate level. Investment banking is very vast field and offers various services like
providing advisory services, trading securities, selling and underwriting securities for
companies, individual and governments. There are many colleges and institutes which offer
diploma, certificate course also.

List Of colleges offering Investment Banking

 Institute of Chartered Financial Analysts of India University (ICFAI) (TRIPURA)

 Indian Institute banking & Finance (IIBF)
 IIPM (New Delhi)
 The School of Investment Banking
 Xavier Institute of Management – Bhubaneswar
 S.P. Jain Institute of Management & Research-Mumbai
 Veer Narmad South Gujarat University
 Mount Caramel Business School-New Delhi
 Planman centre for Higher Education (CHE) Delhi
 Chennai Business School, Chennai

List of Courses offered in Investment Banking:

 Diploma in Investment Banking & Equity Research

 MBA In Investment Banking
 PG Programme in Security Analysis, Portfolio Management & Investment Banking
 UG Programme in Security Analysis, Portfolio Management & Investment Banking
 BA in Finance & Investment Banking
 PG Diploma in Banking & Finance
 Post Graduate Diploma In Investment & Business Research
 Post Graduate Diploma In Global Investment.
Career options in India
 Security Analysts
 Foreign Exchange Trader
 Bank Manager
 Financial Analysts
 Financial Advisor
 Research Analysts
 Equity Researcher
 Investment Banking Analysts
 Sales Manager

3. Investment Banking:
Skill and Talent Requirements

Investment banks want employees with a combination of strong analytical and interpersonal
skills. Some jobs lean more towards one skill set than another (e.g. brokers need to be mainly
sales people). A typical job of an equities analyst requires both analytic and interpersonal skills.
The skills involved include:

Key Skill Area Requirement

People skills: High

Sales skills: Medium

Communication skills: High

Analytical skills: High

Ability to synthesize: High

Creative ability: High

Initiative: Medium

Work hours: 50-120/week

Hard Work Expected and Respected

 Investment banking is a high work, high risk, high reward profession. When you start
your hours will typically be long but the work can be exciting. Be prepared for moments
of frustration where you are stretched too thin and moments of exhiliration where
everything clicks.

Tough to Break In

It's relatively hard to break into investment banking. You need to be prepared to pursue
firms on your own after you have thoroughly prepared yourself.

Believe it or Not, Bankers Have Social Value

Investment bankers have been the subject of social scorn in movies like Bonfire of the
Vanities for decades--a sentiment that reached a fever pitch in the recession of 2008/2009. Are
investment bankers really greedy narcissistic scum? Some probably are. But keep in mind that
they play a crucial social role of helping to direct capital to companies with great ideas that
make people better off.

Analyst Jobs Are the Best Entry Point

Many college graduates start in investment banking in an analyst position. To succeed in

these positions you need to be extremely dedicated, have good spreadsheet skills and
be analytically fluent. Your next step will be to become an associate. Same skills, just
raise the volume.

Communication and Completion Abilities Key

In mid-career, your success usually will depend on your ability to communicate with
clients and get deals done. At this level it is also important to have a good understanding
of market trends, the political and macroeconomic environment and deal mechanics.

Math Skills Can Help

Some jobs in investment banking call for very strong mathematical ability. If you are
good at math think about getting an advanced degree in a technical field (studying areas
such as stochastic calculus and differential equations), then take some advanced finance
courses in options pricing or bond valuation and apply to a research department on Wall
Street (Carnegie-Mellon's MSCF program is a leader in training mathematicians and
physicists for Wall Street jobs).

Accounting Skills Valuable

 The ability to analyze accounting numbers critically is important in most analyst
positions. Ultimately, you should aim for the CFA designation if you would like to be a
securities analyst. The CFA helps you become much more mobile over time. If you have
ambitions too "bail out" some day and become a corporate financial analyst you might
also want to consider the CMA (Certified Management Accountant) designation.

Traders are Multi-Talented

It's hard to define what makes a good trader. A good understanding of the market, quick
reactions, analytical skills and the ability to bluff help. Read Liars Poker by Michael Lewis
to learn more about sales and trading.

et Used to New York

Most large banking firms operate out of New York. Even if you are interested in working
in another location, your general interviewing activities are likely to be centered there.
Other places you should look at include Hong Kong, Tokyo, London, Moscow and
Singapore. If you go looking for a job in investment banking using informational
interviews in the U.S. it is crucial that you make several trips to New York.

Teamwork Crucial

A crucial success factor in investment banking is teamwork. Being able to pull together
persons with large egos to get a presentation together for a client is a challenge and is
likely to be rewarded highly.

Scientists and Lawyers Wanted

There's definitely an interest in people with backgrounds in science and law. Scientist
types can work on everything from derivatives algorithms to biotech banking. Lawyers
can help design new securities, sell leasing business and use their analytical prowess to
talk to clients. This said, you have to sell yourself. It often doesn't hurt to go back and
get an MBA from a top school, and then try to repurpose your career into investment
banking.

Contacts are Everything

The key to breaking into investment banking is a good network of contacts. You may
already be blessed with such a network, but if you don't have one, you can start to
develop one by going on informational interviews, attending industry conferences,
finding alumni from your school in the business etc. Our contact lists may be helpful in
this process. Keep in mind that your network might not really "pay off" for some time. If
 you are young and haven't gone for an MBA degree, try to get into the best possible
school and then go for quantitative and analytical coursework.

Getting Things Done is Important

Starting off in an investment bank, you are usually responsible for getting projects done
well and on-time, whether it be writing reports, running spreadsheets, trading, doing
research or coding programs. Later, once you get involved with clients and ideas for
generating revenue, you will be rewarded greatly if you can bring in business. At higher
levels (usually Director, Managing Director and up) you are exposed to much greater
risk. At this level, people are often fired for non-performance, whereas at lower levels
you may not be scrutinized as closely.