Investment Banking in India: Please Avoid It and Try Again in Another Country

If you have the option to work in finance in different parts of the world, investment banking in India should be at the bottom of your list.

I always advise students that it’s best to start in a global financial center, such as New York or London, and that is part of the rationale here as well.

But the main problem is that winning a “true” front-office investment banking role in India is virtually impossible, even if you have outstanding academic credentials and work experience.

Considering its ~1.4 billion population, India has a tiny number of IB Analyst roles each year – likely ~100 or fewer across the country.

Places like Australia and Singapore also have a tiny number of new roles each year, but they don’t have 300,000+ students competing for 50 – 100 jobs.

I’ll start with the TL;DR version of investment banking in India and then go into the gory details:

The TL;DR About Investment Banking in India

• India is fairly diversified in terms of deal types (equity, debt, M&A) and target industries, but the deal volume is small next to China, Europe, and the U.S.
• The U.S.-based bulge brackets (GS, MS, JPM, Citi, and BofA) are the strongest international banks, and Avendus, Kotak, JM Financial, ICICI, and Axis are the strongest domestic firms.
• There are ~100 or fewer “true” front-office Analyst roles each year, and you have almost no chance unless you go to one of the top IIMs. Some people get in via the top IITs, the Chartered Accountant (CA) designation, and other means, such as networking / lateral hiring, but these are lower probability than the IIM route.
• It is almost always better to do an MSF or MBA in another country and break into the finance industry there than to compete for real IB jobs in India.
• Compensation is a big discount to U.S. pay on a nominal basis, but adjusted for the cost of living, it’s significantly higher. If you’re an Associate or VP in India, you will enjoy a far better lifestyle than in NY or London.
• Exit opportunities are quite limited, there aren’t that many domestic PE/VC firms, and you’d be better off aiming for these roles in other countries.

What Do Investment Banks in India Do?

Technically, India is a “hub market,” similar to places like Dubai and Singapore.

Dubai is a hub for deals in the Middle East, Singapore is a hub for deals in Southeast Asia, and India is a hub for deals in “South Asia.”

But India is primarily a single domestic market because there are very few deals in other South Asian countries (Bangladesh, Pakistan, Bhutan, Nepal, Sri Lanka, etc.).

If you go back several decades, investment banking in India has grown impressively, with fees going from ~$100 million USD in 2000 to ~$1.3 billion in 2023:

(Source: LSEG Data & Analytics Report on Investment Banking in India)

This may look impressive until you realize that global investment banking fees are typically $100+ billion per year.

Think about it like this: India has ~17% of the global population and ~4% of the global GDP but only ~1 – 2% of the global IB fee pool.

If you look at just M&A deal activity involving any Indian company, the volumes are typically between $100 and $150 billion USD per year:

Again, this looks impressive until you realize that the Asia-Pacific region may see ~$1 trillion+ of M&A deal activity per year.

People have argued for years that equity deals “dominate” IB activity in India, but this is a bit of a stretch if you look at the fees by product type:

Deals themselves are diversified across different sectors.

Financials are usually in the #1 spot because banks and insurance firms constantly issue debt; other sectors trade places in the rankings.

You’ll see deals in industrials, technology, healthcare, power, consumer/retail, real estate, and all the other sectors.

Investment Banking in India: The Top Firms

As with many other regions, this list can be divided into “the top domestic firms” and “the top international firms.”

The difference is that the international bulge bracket banks tend to be stronger in M&A deals involving Indian buyers or sellers, while the domestic banks tend to be stronger in equity and debt deals involving Indian companies.

Among the bulge brackets, the U.S.-based firms (GS, MS, Citi, JPM, and BofA) tend to perform best.

The European firms have a weaker presence, with the possible exception of HSBC (which is not technically a bulge bracket and arguably not European).

The Big 4 firms, such as Ernst & Young, PricewaterhouseCoopers, and Deloitte, also advise on smaller M&A deals.

Of the middle-market banks, only Jefferies seems to have much of a presence.

Among the elite boutiques, Moelis has a notable presence, and Rothschild has an office in Mumbai but does not appear to be super-active.

Among the domestic banks, most people view Avendus, Kotak, JM Financial, ICICI, and Axis as “the best” in terms of deals, work, and compensation.

Firms like the State Bank of India (SBI Capital Markets), IIFL, Arpwood, Trust Group, AK Financial Services, HDFC, Edelweiss, Veda, and o3 Capital are also well-regarded but are closer to middle-market or “in-between-a-bank” firms.

Mumbai is the financial capital, but some firms also operate in cities such as Bangalore, Kolkata (Calcutta), and Delhi NCR.

Investment Banking in India: Recruiting and Interviews

Getting into the industry is the main problem with investment banking in India.

Here’s why it’s a Herculean task.

1. Very Few “True” Front-Office Roles – Since team sizes are small and deal volume is limited, you’re probably looking at ~100 Analyst roles per year across the entire country (vs. 2,000+ in a region like the U.S.).
2. Many “Support” and “KPO” Roles – However, there are many “support” and “knowledge process outsourcing” (KPO) roles at banks. Some people in these roles claim they are in investment banking, but the jobs differ and pay significantly less. They’re mostly supporting pitch books and deal execution in other regions, not working on domestic deals from start to finish.
3. The IIM ABC Path – The top banks in India hire primarily from the top three Indian Institutes of Management (IIMs) in Ahmedabad, Bangalore, and Calcutta (“IIM ABC”). Each one has ~400 students, and in most years, only the top 10 – 15 students win roles at bulge brackets or top domestic firms. Oh, and over 300,000 students apply each year for these ~1,200 spots. Good luck!
4. Analyst vs. Associate Confusion – The IIMs are more like MBAs in the U.S. and Europe, but despite that, you start as an Analyst if you graduate from one and win an IB offer.
5. Alternate Paths – If you cannot get into IIM ABC, it is sometimes possible to win IB roles from one of the top Indian Institutes of Technology (IITs), as a Chartered Accountant (CA), or as a lateral hire if you worked for a regional boutique or another small firm. Getting in as a Company Secretary (CS) or Cost and Management Accountant (CMA) may also be possible. But the odds are still against you, and these paths require a ton of networking.
6. Recruiting Process – If you win an IB internship in India, there’s not necessarily an expectation that it will “convert” into a full-time offer. Many students do various internships during/after university and then go the IIM route to aim for full-time IB roles.
7. Interviews – Interviews are similar to those in other regions, but they are more technical than in a place like London because of “cultural differences.” Case studies are also more likely to come up, but you probably won’t have to build a detailed model unless you have previous experience.

The bottom line is that it’s so difficult to get into investment banking that you’re better off going to university, a Master’s program, or an MBA in the U.S. or Europe and recruiting there.

If you cannot do that, you could always aim for roles at boutiques or in adjacent fields, such as Big 4 Transaction Services or equity research, and move in from there.

But the odds are very much against you, so it’s still not a great place to start a finance career.

Language Skills and Other Qualifications

Students sometimes ask about the language requirements in places like Dubai, Singapore, or Hong Kong if they’re not from the region but want to work there.

However, this question is irrelevant in India because foreigners have essentially no chance of working there anyway – even Indians have a low chance of getting in.

Of the students who do break in as Analysts, everyone will know English and one or more of the local languages.

English is the business language of India, but the country has 100+ major languages and over 1,500 “other languages.”

So, while many pitch books and documents are written in English, bankers use the spoken language their clients are most comfortable with, whether it’s Hindi, Bengali, Marathi, Urdu, or something else.

Investment Banking in India: Salaries and Bonuses

I try to be fair and balanced in all the articles on this site, and I’ll do the same here: The compensation is quite good considering the cost of living in the country.

I found contradictory information when researching this point, but I’ll present my rough estimates below.

The ranges at the international bulge brackets as of 2024 are:

• Analyst: 40 – 55 “lakhs” INR base salary per year with an 80 – 100% bonus (approximately $85K – 130K USD total). But remember, this is more of a “post-MBA” role.
• Associate: 65 – 75 lakhs INR base salary with an 80 – 120% bonus (~$140K – 200K USD).
• Vice President: 90 – 120 lakhs INR base salary with a 75 – 125% bonus (~$190K – 325K USD).
• Directors: 130 – 150 lakhs INR base salary with a 50 – 200% bonus (~$235K – 540K USD). Note that bonuses are highly variable and depend on closed deals at this level; this is a rough estimate based on bonus/salary multiples in other regions.
• Managing Directors: 150 lakhs INR base salary with a 0 – 300% bonus ($180K – 720K USD). Note that bonuses are highly variable and depend on closed deals at this level; this is a rough estimate based on bonus/salary multiples in other regions.

Bankers in groups like ECM and DCM will earn a bit less, and the domestic banks tend to pay lower base salaries but potentially higher bonuses.

For example, Analyst base salaries at firms like Kotak or Avendus might be in the $30K – 40K USD range, but bonuses could be well over 100% in a good year.

Base salaries are lower at the domestic firms because they tend to maintain bigger teams, which hurts in average/bad years and helps in good years.

If you’re in a support or KPO role, total compensation will be ~50% lower than these numbers.

While these ranges are much lower than the U.S. rates, you can live a very good lifestyle in India on $100K – 150K USD per year.

Just for fun, here’s a comparison of the cost of living in NY vs. Mumbai.

Teams, Promotions, Lifestyle, and Hours in India

Most investment banking teams are small – perhaps 2 – 3 senior bankers and 1-2 junior bankers supporting them at the international firms.

This means you’ll get more deal exposure but also have a harder time getting promoted because there may not be “room” to move up.

You don’t necessarily see quite the same division into M&A vs. capital markets and syndication that you do in other regions, but this varies by bank.

Some banks have maintained more of a capital markets team and flown in M&A MDs “as needed” to pitch for and execute deals.

If you consider the domestic banks, team sizes tend to be bigger, with more division between different groups (so lower base salaries, but also more of a structured path to promotion).

These differences in team structure also explain why the hours may be slightly better at the domestic firms (e.g., ~70 hours per week for Analysts rather than ~80+ per week).

Investment Banking in India: Exit Opportunities

Private equity firms, venture capital firms, and hedge funds still exist, but they are underdeveloped even compared with places like Singapore and Dubai.

There are very few domestic PE firms due to rules and regulations that make it difficult to raise funds locally and the fact that many wealthy families and institutions are quite conservative with their investments.

So, in practice, many funds are set up in places like Singapore or Mauritius and pursue Limited Partners in the U.S., Europe, and other regions.

Exits are also tricky because liquidity is limited, and holding periods often extend to 10 – 15+ years.

The top PE/GE/VC firms operate in India (Apollo, Blackstone, Carlyle, KKR, TPG, Sequoia, Matrix, TA Associates, and Accel all have offices), but deal activity tends to be more limited.

One difference is that, like other emerging markets, you don’t necessarily “need” to do banking to get into these industries.

Some PE firms hire from Big 4 firms, consulting firms (MBB), and even corporate finance/development roles at conglomerates like Reliance Industries.

Some argue that while these industries may be smaller in India, international firms still pay high salaries, bonuses, and carried interest since everything is denominated in USD.

Therefore, if you reach the top levels, you could potentially make an outsized fortune, retire after a few years, and live like a king.

While these statements are correct, they miss the fact that it is incredibly difficult to get in and advance to that level in the first place.

Why You Should Probably Avoid Investment Banking in India

Investment banking in India and LBO models are similar because the main problems in both are the entry and exit assumptions.

It is absurdly difficult to win a true front-office IB role, and even if you win one, that doesn’t guarantee much in terms of advancement.

Buy-side roles are underdeveloped vs. other regions; in practice, many bankers simply stay in their roles long-term.

If you work in India but decide to leave for another country, that creates another set of issues because you may not be competitive in other markets, and your savings will not go nearly as far.

If you are currently in India and want to break into investment banking, I recommend doing a Master’s in Finance or MBA in another region.

If you’re young enough, consider transferring to a top university in another country (but this may be trickier with accelerated recruiting).

If you cannot leave India, think about options like the Big 4 firms, equity research, tech companies, or boutique banks, gain some experience there, and see if you can move in as a lateral hire.

If you’re currently working in another country and thinking about IB in India, please re-think your plans.

I’m joking (kind of), but I cannot think of a great reason for most foreigners to move there.

It might make sense if you’re already at a senior level, you have family and other strong connections to the country, and you can get a much better lifestyle.

But if that’s you, why not go to Dubai or Singapore and earn even more?

If you do well enough there, you might even secure a cushy sovereign wealth fund job that pays $1 million+ for 40-hour workweeks.