What is Investment Banking
Investment banking means different things to different people. Investment banks want employees with a combination of strong analytical and interpersonal skills. Many college graduates start in investment banking as Analyst. The business of most large investment banks can generally be divided into two categories: Investment Banking (sometimes referred to as Corporate Finance) and Sales & Trading.
Investment Banking divisions are involved in debt and equity capital raising, financial advisory services (including mergers and acquisitions) and occasionally merchant banking activities, while Sales & Trading divisions engage in the research, brokerage and distribution of securities. In many transactions, both are required. For example, while an investment bank may convince a corporation to use their Investment Banking arm to underwrite their bonds, it is Sales & Trading who actually finds investors for these bonds. Investment banks generally work with four client groups: corporations, municipalities (governments, hospitals, universities, etc.), financial institutions (insurance companies, money managers, venture capital and leveraged buyout firms, banks, etc.), and wealthy individuals.
How to make career in Investment Banking
Various institutes offer courses in Investment banking in India.The School of Investment Banking (SIB at Mumbai and Noida) is an independent training institute that offers certificate courses related to Investment Banking & Equity Research. They offer full time and part time courses also. The fees of full time course for 10 weeks is around Rs. 150000 + service tax for 10 weeks course. A candidate from various background like Engineers, MBA’s, CA’s, Finance professions and freshers can apply for this programme.
List of colleges offering Investment Banking
- Institute of Chartered Financial Analysts of India University (ICFAI) (Tripura)
- Indian Institute of Banking & Finance (IIBF)
- IPM, New Delhi
- The School of Investment Banking (SIB)
- Xavier Institute of Management – Bhubaneswar
- S.P.Jain Institute of Management & Reaserch – Mumbai
- Veer Narmad South Gujarat University
- Mount Caramel Business School – New Delhi
- Planman Centre for Higher Education (CHE), Delhi
- Chennai Business School, Chennai
Here are some key points to be aware of in India:
First, there are far fewer front-office investment banking jobs – only around 2,000 to 3,000 total – despite the size of the economy. Next, the majority of investment banking jobs in India are in knowledge process outsourcing firms (KPO’s) and “3rd Party KPOs” that serve many clients.
Therefore, these are some of the institutes from where a candidate can enroll for Investment Banking Course and can find a good job through campus placement. I will caution the student before enrolling himself that he or she should find about placement available at the respective institutes as most of the institute boast about big corporate names and high salaries to lure the candidate.
Saurabh Khanna
Sr. Academic Trainer
Institute of Finance, Banking and Insurance