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Tag: careers in investment banking

Investment Banking Careers: Skills and Prospects Ahead

Posted on by Imarticus Learning

Introduction

Investment banking is among the best-paid and most sought-after careers in the banking sector. The profession is highly attractive to professionals due to the extremely lucrative pay, global exposure, and career enhancing working environment. Investment bankers help capital raisings, mergers and acquisitions (M&A), and advisory services for governments, companies, and institutions.

As with the development of trading, further reliance on options and futures trading, and additional demand for futures and stock option specialists, the investment banking industry is undergoing revolutionary change.

If you are keen to pursue a career in investment banking, then from this guide you will get an idea about what skills you need, job prospects, salary structure, available opportunities, and how the placement courses of investment banking help you in getting a successful job initiation.

Table of Contents

  • What is Investment Banking?
  • Skills That Will Help You to Build a Career in Investment Banking
  • Investment Banking Career
  • Investment Banking Placement Courses
  • How AI is Changing the Landscape of Investment Banking Industry
  • Stock Options and Futures: An Investment Banking Critical Skill
  • Futures and Options Trading: Is All the Hype Necessary?
  • Career Role of Investment Banking
  • Salaries of Investment Bankers and Career Advancement
  • Work-Life Balance and Role Conflict in Investment Banking
  • Frequently Asked Questions
  • Conclusion and Key Takeaways

What is Investment Banking?

Investment banking is a banking division that involves helping individuals, corporates, and government entities raise money and finance complicated financial transactions. Investment banks also deal in mergers and acquisitions as well as securities dealing.

Principal Activities of Investment Banking:

  • Mergers & Acquisitions (M&A) – Helping companies acquire or merge with other companies.
  • Initial Public Offerings (IPO) – Helping companies go public by issuing stocks.
  • Debt & Equity Capital Markets – Raising funds through issue of bonds and stock issues.
  • Risk Management & Derivatives Trading – Hedging risk in stock options and futures and other derivatives.
  • Financial Advisory Services – Providing strategic financial advice to corporates and institutions.

Investment banking is a demanding career, but it holds immense scope for career growth and wealth creation.

Key Skills for a Career in Investment Banking

To succeed in investment banking careers, professionals need to acquire a wide range of skills in finance, analytics, and communication.

1. Financial Modelling & Valuation

Investment bankers need to be proficient in:

  • Financial model building to analyze companies
  • Discounted cash flow (DCF) analysis
  • Familiarity with comparable company analysis (CCA)

2. Market Knowledge & Trading Skills

  • Stock options and futures knowledge
  • Futures and options trading familiarity
  • Capital markets, interest rates, and derivatives understanding

3. Data Analytics & AI in Finance

  • Artificial intelligence in trading understanding
  • Applying AI market analysis to make investment decisions
  • Learning Python, R, and Excel for financial modeling

4. Communication & Negotiation

  • Presenting investment opportunities to clients
  • Negotiating M&A deals
  • Preparing financial reports and presentations

5. Risk Management & Compliance

  • Anti-Money Laundering (AML) regulation understanding
  • Risk management practices implementation
  • Credit and operational risks management in financial markets

Investment Banking Career Pathway

Investment banking follows a structured career progression, typically beginning with entry-level roles and leading to senior management positions.

Typical Career Progression in Investment Banking:

Level Job Titles Average Salary (INR)
Entry-Level Analyst, Junior Associate 6-12 LPA
Mid-Level Associate, Vice President 12-30 LPA
Senior-Level Director, Managing Director 30 LPA+

Investment bankers often start as analysts, handling financial modelling and market research, before moving into higher strategic roles.

Investment Banking Courses Online with Placement Assistance

An organised structured education is essential for becoming part of the investment banking industry. Some online investment banking courses provide certification and placement assistance.

Certified Investment Banking Operations Professional (CIBOP™) Program by Imarticus Learning

CIBOP™ is one of the best investment banking courses with placement assistance which equips you with interview-ready skills and interview assurances.

Key Features of CIBOP™:

✅ 100% Job Assurance – Seven interview assurances with an 85% placement success rate.

✅ Industry-Applicable Curriculum – Includes securities operations, asset management, risk management, and AML compliance.

✅ In-Depth Career Guidance – Resume preparation, soft skill development, and simulated interviews.

✅ Practitioners’ Training – Case studies, live projects, and exercises.

CIBOP™ graduates have been placed at JP Morgan, Goldman Sachs, and HSBC.

Transform Your Finance Career in Just 90 Days with Investment Banking Course

How AI is Revolutionizing the Investment Banking Sector

Applications of artificial intelligence in trading has transformed investment banking. AI algorithms are transforming decision-making and risk management processes.

Key Applications of AI in Investment Banking:

  • Algorithmic Trading: AI executes trades with high precision and velocity.
  • Fraud Detection: AI improves AML compliance and risk determination.
  • Robo-Advisory Services: AI-powered platforms offer customized financial counsel.

Stock Options and Futures: An Essential Skill for Investment Bankers

Investment bankers should know stock options and futures, which are both critical for strategic investment and risk management.

Why Study Stock Options and Futures?

  • Utilised in portfolio management and hedging
  • Critical in structuring financial transactions
  • High demand for derivatives specialists

Work-Life Balance and Investment Banking Challenges

Investment banking is a job with long working hours, stressful work environment, and close deadlines as typical challenges.

Maintaining Work-Life Balance:

  • Prioritise time management and delegate
  • Engage in regular exercise and take frequent breaks
  • Acquire stress-management skills

In spite of the challenges, career prospects and compensation make investment banking a desirable career.

Frequently Asked Questions (FAQs)

  1. What is the best investment banking course?

Imarticus Learning’s CIBOP is among the best investment banking courses with placement.

  1. Is investment banking taken over by AI?

Investment banking is transformed by artificial intelligence but still needs human intelligence.

  1. Do investment bankers need to learn futures and options trading?

Yes, futures and options trading is an essential skill set for investment bankers.

  1. What are the different job profiles in investment banking?

Career options for investment banking are Analysts, Associates, Risk Managers, and M&A Consultants.

  1. How much does an investment banker earn?

Investment bankers earn between 6 LPA and 30 LPA+ based on experience.

Conclusion

There is huge earning potential for investment banking in career options.

Key Takeaways:

1️⃣ Career options for investment banking need financial analysis, trading, and risk management skills.

2️⃣ Career prospects get doubled by learning about futures and options trading, AI applications, and derivatives.

3️⃣ Placement and training in CIBOP™ is provided with a systematic approach.

Start a high-paying investment banking career with Imarticus Learning’s CIBOP™ today!

Industry Report: Banking in India: Initiatives of the Government Part III

Posted on by Imarticus Learning

Read the previous part of the report here.
The chief regulatory body, which is supposed to deal with all the finance and banking related decisions, is the Government of India. In the recent times, this body seems to have taken a considerable amount of decisions in order to strengthen the Indian Banking Sector. Some of which are as follows.
In the month of July 2016, the Government of India reportedly allocated about 3.41 billion USD. This amounts to Rs 22,915 crore, which was allocated in the form of capital infusion to 13 public sector banks. This move is believed to increase the economic growth of the country by improving the liquidity and lending operations of these public sector banks.
The Reserve Bank of India (RBI) has already begun on its move to make all transactions digital in nature and absolutely paper free. Following in the same vein, the RBI has released the Vision 2018 document, which primarily aims at increasing the use of electronic payments through all the divisions of the society. This move will not only increase the usage of digital channels but also boost the customer base for mobile banking.
All the commercial banks which are scheduled will now be allowed to grant non-fund based facilities including partial credit enhancement (PEC), to all customers including those that do not avail any fund based facility from any of the banks present in India.
The Union Budget, which was announced in the year 2016-17 had a provision towards interest subvention. This provision is basically made to help in reducing the burden of loan repayment by the farmers. On account of this, an amount of 15,000 crore INR is being granted by the government.
The Government of India is looking to set up an exclusive fund, which will be a part of the National Investment and Infrastructure Fund (NIIF). This fund will basically be set up for dealing with all the stressed assets of banks. This fund will be taking over all the assets, which although viable do not have any additional fresh equity from promoters to complete the projects.
Post the massive drive that was conducted by the government to open up a number of bank accounts, quite a large number of Indians were financially included in the banking sector. The Reserve Bank of India plans on coming out with guidelines, which will be dealing with the basic know-your-customer norms. These norms would be the primary focus of protecting the consumers.
The government of India is well on a warpath, to provide insurance, pension, and credit facilities to all of those citizens, who were excluded from enjoying the benefits offered by the Pradhan Mantri Jan Dhan Yojana (PMJDY).
In a bid to provide relief to all the state level, electricity providing companies, the government has proposed to its lenders that, about 75% of their loans would soon be converted to state government bonds.
Thus with so many new and effective schemes falling into place, courtesy the government of India, things are looking quite positive for the banking sector. This is great news for those finance enthusiasts who opt for special training programs, offered by Imarticus Learning in the field of Finance and Investment Banking.

Loved this blog? Read something similar here:
How to succeed as an Analyst in Investment Banking
Investment Banking – Why do Sellers use an Investment Banker? (I)
Working in a Boutique vs a Bulge Bracket Investment Banking Firm

Investment Banking- Understanding the Deal: The Pitch Process (II)

Posted on by Imarticus Learning

In our last post we looked at why companies use investment bankers to sell or buy assets. In this post we try and understand what happens once a company decides to use an Investment Banker. What happens next?
Well they first need to look for a banker. So let’s go back to our earlier example taking the government’s stake sale in its Stuuti companies. Before they decided to shortlist Citibank, ICICI and HDFC, they hold a beauty parade where every banker worth their salt ‘parades’ their wares and offerings during a ‘pitch.’
Quite often you’ll find Investment Banking analyst friends working late on Saturday evening. When you ask them why, it’s quite likely they’ll utter the dreaded words, ‘pitch document’. The Pitch Document is the bread of Investment Banking, it’s the pizza base of that great Margerita. Without a great pitch document, all you are left with are handful of deals you managed to wing through your bosses contacts and even then you’re going to have to pitch for the deal. So what is a pitch document? It is a meeting backed up by a document where a banker convinces you, the client, why they are the best team to sell your asset. How do they do it?
The easiest way to explain this is to liken it to selling a pencil. If I have to sell you a pencil, what would I say? I need to tell you why this pencil is better than all the other pencils out there. I also need to tell you why this pencil costs as much as it does. For that I need to know what goes inside the pencil, how much those cost etc. If I need to sell the pencil on your behalf because you are my ‘client’ I need to know everything YOU know about the pencil. The price I sell the pencil at is the ‘value’ of the pencil. I have to explain to you what that value is and how I arrived at that value. I need to convince you I know everything there is to know about pencils, pencil making, the pencil industry, competing pencils so I can sell this pencil better than anyone else out there. So a usual Pitch Document consists of five elements.
1. Establishing my credentials – how many pencils have I sold before and to whom. Whose pencils have I sold and my expertise in selling these pencils. Perhaps I have someone who used to work in pencil manufacturing, Steadler maybe or Apsara, and knows the nuances of pencil making, has the inside track if you will.
2. Company Overview– I tell you a little bit about your company to show you that I know about your pencils. It’s a little counterintuitive I know but it shows I’ve done my homework and know what makes your pencils tick. I might also use this opportunity to tell you any risks I foresee with selling this pencil. Perhaps the pencil has an eraser that’s of an older technology or uses too much wood etc
3. Industry Overview– Here I showcase how much I know about pencils in general, trends in pencil making, what drives pencils usage, opportunities and risks in pencils which will help me forecast the market for pencils and therefore my clients potential market which will flow down to profitability and cashflows
4. Valuation– Once I have cashflows and industry numbers I put together the pencil’s valuation using both cashflows (DCF) as well as the value multiples of other pencils (Comparable PE and EV/EBITDA, EV/Sales multiples )in the market along with the value of what other pencils have been sold at in the past (Transaction multiples)
5. Potential Buyers of your pencil. Using my considerable industry knowledge I tell you who would be most interested in buying your pencil.
All this and more is taught in our FMVC as well as our Diploma in Corporate Finance, both of which are Mumbai’s best courses in Financial Modeling and Corporate Finance and Investment Banking.