Investing Banking as a Competitive Industry: Reasons to Become An Investment Banker and what do they do?

Banking has been a competitive industry for years. The competition is so great that investment bankers have to be on top of their game at all times. The best way to improve the chances of landing one of these coveted positions is by getting the education and experience needed beforehand.

There are many reasons that people consider making a career in this new-age transformation of industries. This blog post highlights the reasons to become an investment banker and what an analyst is as a part of the job role.

Reasons to make a career in Investment Banking Industry:

Investment banking is a very competitive industry where only the best and brightest are hired. Because of this dynamic, investment bankers are those getting do everything in their power to attract top talent.

  • Great way to enter Private Equity & Hedge Funds
  • Excellent salary packages
  • Get the best business education possible
  • Explore any field of finance & business while being an investment baker
  • Experience different tasks every day
  • Make an essential impact on the economy and lives on a day-to-day basis.
  • Make lifelong friends that support your professional graphs
  • A great career pathway
  • Exciting Deal making exposure
  • Influence people and clients
  • Playing on excel and financial modeling
  • Get a skill in financial modeling and valuation
  • Surrounded by brilliant and talented individuals
  • Build Credibility for yourself in the start-up world
  • Build Confidence & learn to handle moods and emotions
  • Developing a fantastic work ethic
  • Learn networking and build one

What does an investment banking analyst do?

An investment banking analyst course is designated to evaluate & research investment opportunities to find the suitable investment for the client’s goals. Investment banking analysts are responsible for assessing opportunities & recommend investments based on needs & goals.

They handle corporate clients like new investors, existing investors, or even the analyst’s organization. If the clients are new, the analyst is responsible for gathering & process data, investigating opportunities & present the findings to the team/client.

For existing clients, analyst evaluates investments based on performance & makes recommendations for keeping/replacing them. If the client is their organization, analysts assess earnings reports, assets, industry trends, etc., to make investment recommendations for their institution.

Other investment banking analyst responsibilities include the following:

  • Reviewing & analyzing data for investment portfolios, the performance of stocks & bonds, credit trends, & other transactions
  • Presenting results of research & investigation to internal team or external clients
  • Handling administrative tasks like generating reports, arranging meetings, & other materials, while ensuring the unit operates smoothly.

How to Become an Investment Banker?

best investment banking courses with placement in IndiaImarticus Learning offers investment banking certification courses. The Certified Investment Banking Operations Professional (CIBOP) course fully equips students with the skill-sets needed to kick-start a career in investment banking operations & clearing services.

Upon completing this course, students receive an industry-recognized, internationally accredited Certificate of Excellence.

Through real-world scenarios, trading simulations & hands-on assignments, students understand the industry more cohesively & practically, with an ability to contribute to the workplace from day one. The CBP program stands out in finance courses in its depth, expertise, and relevance to the investment banking industry. It is a valuable pathway to gain industry-relevant domain knowledge and get placed in a leading global bank.

Contact us through the Live Chat Support system or visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, or Gurugram for more insights on investment banking certification courses.

Investment Banking Courses After Graduation That Will Supercharge Your Career!

The importance of higher education is known universally. Higher education opens up doors to growth, new opportunities, and a plethora of jobs.

Investment banking is becoming one of the most popular career options among graduates, and this has led to a stark increase in the demand for banking courses after graduation.

Investment banker courses can help graduates land their dream job and explore new possibilities for a bright career and future.

Investment Banking CoursesThings to Consider While Applying for an Investment Banker Course

Choosing from the number of investment banking courses online can be a daunting task. Therefore, you need to keep in mind some points to consider before choosing from the Investment banking courses in India. Although the investment banking course duration may not be a major concern for students, the investment banking course fees generally are.

You may find some free investment banking courses online but they usually provide pretty basic knowledge and often lack credibility. And, you may not even need to go for the very expensive courses. You need to figure out which investment banking course is the right fit for you according to your budget and the skills you need to learn or brush upon.

The skills the course is looking to inculcate in you in the next important thing you need to consider. Also, there are not many investment banking courses with placement assistance, but if you can find one within your budget, then it’s like the cherry on your treat.

Best Investment Banking Courses Online

Here are some of the best investment banking courses in India:

1.  CIIB (Certificate in Investment Banking)

Certificate in Investment Banking is a comprehensive exam to test the candidate’s level of experience and expertise in the investment banking field. This is one of the best investment banking courses after graduation. The investment banking course fees are not much compared to other courses online.


Certificate in Investment Banking Course Details
:

  • It is provided by the AIWMI (Association of International Wealth Management of India).
  • The eligibility of this course is minimal. You can be a graduate in any stream to take this course.
  • The course will provide you knowledge on:
    • Financial Statement Analysis
    • Investment Banking Basics
    • IPO, Listing, and Fundraising
    • Transactions Analysis
    • Corporate Actions and Restructuring
    • Leveraged Buyouts (LBO)
    • Mergers and Acquisitions
    • Asset Class Valuations including DCF

2.  NCFM (NSE Academy Certification in Financial Markets)

NCFM is conducted by the National Stock Exchange of India. The entire course focuses on providing you with important information and skills that help you in increasing the quality of your service as an investment banker. This may not be one of the investment banking courses with placement but sure increases your chances of landing on an investment banker post in one of the top companies. Fluency in English and knowledge of computers are the only eligibility that you need to take this course.

3.  FLIP (Finitiatives Limited India Pvt. Ltd.) Certification

FLIP is a leading financial and banking firm that provides the finest courses in investment banking in India. This is one of the most prominent courses that a student can go for after graduation to sharpen his/her expertise and become one of the best investment bankers out there.

Investment banking has become a highly competitive field and is sought after by almost every graduate. Banks, companies, corporations, and governments now want experienced and expert investment bankers who are highly qualified.

Though investment banking course duration for some certifications may seem like a long time, the high pay and high profile life of an investment banker make up for it. If you want to pursue a career in this field and want to go for the best course, then do check out the certificate in investment banking course details

How Imarticus Learning Helped Neha Jha Land a Dream First Job at Morgan Stanley?

Like many newly-graduated commerce freshers, Neha Jha was faced with the daunting prospect of securing a job for herself in the highly competitive and ever-evolving investment banking industry. She was smart enough to realize that a mere college degree would not suffice if she wanted to land her dream job as an investment banker, and she soon learned that she would have to enhance her skills to make strides in her budding career.

After conducting her due diligence, Neha arrived at the conclusion that enrolling herself in the Certified Investment Banking Operations Professional (CIBOP) program offered by Imarticus Learning was the best and most logical step to take in pursuit of her career aspirations.

This turned out to be the wisest decision Neha could have taken, and she is quick to acknowledge the hugely positive impact the CIBOP program has had on her career, culminating in her getting an official certification on investment banking and job placement at Morgan Stanley, the prestigious global financial institution.

In her own words, Neha summarizes her experience at Imarticus by saying, “I’ve done the CIBOP course, and my journey at Imarticus was very good. I have learned a lot and obtained a lot of knowledge. My professor and trainer, Dharmesh Sir and Lourdes Ma’am, we’re very good at providing knowledge and solving all my doubts. As a result of enrolling in this course, I have finally been placed at Morgan Stanley. It’s my first job and I’m very excited. Thank you Imarticus!”

Neha Jha’s success story is one of the thousands of investment banking students who have harnessed the benefits of Imarticus Learning’s premier CIBOP program to boost their careers and give themselves an invaluable competitive advantage over their peers. This in-depth 180-hour program has been designed to help students acquire the requisite skills needed to become a modern-day investment banker by providing crucial insights into the complex functions of investment banking operations.

To find out more about Neha Jha’s experience at Imarticus Learning, please click here.

A Newbies Guide to Investment Banking

To the layperson with limited knowledge of commerce and banking, ‘Investment Banking’ is bound to be a mystery of sorts. The general understanding of investment banking among the common public is limited and investment banking continues to remain the domain of specialists or in other words investment bankers.
In a way, this is justified. The complex financial operation should be left in the hands of experts just as investment banking courses is left to investment bankers. However, there is little reason not to have a general understanding of investment banking.
It could probably serve you well at some point in time, especially, if you run a business that has the potential of going public or if you aspire to work in the banking sector. Additionally, a basic understanding of any subject, no matter where your interests lie or the nature of your profession is never a bad thing. It is all about knowledge for knowledge’s sake which should drive you to ask the question “What is investment banking” and seek out the answers that are laid bare for you within this article. Read further to know more.
Definition of Investment Banking for Newbies
If you find yourself asking what is investment banking? The investment banking meaning or definition as detailed below should serve you well. Investment banking courses can lead you further in the right direction.
Investment Banking meaning in the simplest of terms is a branch of banking operations wherein the banks act as middlemen between companies in need of capital and investors who are happy to furnish capital or seed money in return for a profit in the future. As mentioned earlier investment banking is the area of expertise of specialists or investment bankers to be precise.
A company in need of capital is almost never in the position to source capital by itself and that’s where investment bankers come in. Investment bankers are specialists with extensive connections to investors who have money to spare and wish to invest that money in the right business ventures.
In return for a commission, an investment bank and it is a team of investment bankers will act as middlemen between a company in need of capital and investor who can furnish that capital in lieu of a profit in the future. It is easy to see how investment banking works to the advantage of growing companies in need of seed money and investors who are eager to earn money on money that would otherwise be unutilized. It is fair to say that we have established the definition and intrinsic importance of investment banking thus far. Now let’s venture deeper into additional information pertaining to how investment banking works.
As mentioned before, Investment Banking works on the principle of serving companies in need of money by mediating with investors that have money to invest in lieu of an ROI (return on investment). This process of acquiring capital or seed money on behalf of a company in need is structured. A company may access the funds its needs from an investor by means of …

  • Borrow Debt
  • Equity Sales
  • Or Selling the Company

Borrow Debt
In the simplest of terms, borrowing debt is terminology for the terms and conditions wherein a company that is need of funding gets the money it requires from investors with the understanding that the money will be paid back over time with interest. The investment bank acts as the middleman to set this deal in motion for which it earns a fee and the investors are rewarded with paybacks along with an interest.
Selling Equity
A company may choose to gather the funding it needs by selling equity or part ownership of the company to investors. The investment bankers play an indispensable role in facilitating the sale of equity.
Selling the Entire Companies
Often times, the owners of a company may wish to sell a company for a wide range of reasons. Investment bankers also facilitate such a sale on behalf of the company in exchange for a fee or commission.
In simple terms, investment banking is an extension of brokering. However, various investment banking courses can help you go deeper into the subject; if this is where your interests lie.

Industry Report: Investments and Developments Part – II

[Read Part 1]
This report analysis would be mainly dealing with all the key investments and developments in Indian banking sector.
Starting from the basic, central level, the RBL Bank Limited, a private sector bank in India, has reportedly raised about Rs. 330 crore as a result of their association with CDC Group Plc. This is a UK based financial development institution and will be helping the RBL bank, to strengthen their capital base, in order to meet their future needs.
The World Bank has reportedly signed an agreement with The State Bank of India, which is worth Rs. 4200 crore. This agreement basically deals with connecting all the solar rooftop projects in India, which are also known as GRPV, and will be receiving financing as a part of this agreement.
JP Morgan Chase, which is considered to be the largest bank in America, has been in talks of expanding their operations in India. They have gotten a head start on the same, with three new branches in, Delhi, Bangalore and Chennai which will be an addition to the current branch in Mumbai.
An investment management company, known as the Canada Pension Plan, has reportedly bought a large stake, which it bought away from a Japan based, banking corporation called Sumitro Mitsui. These said stakes were in Kotak Mahindra Bank Ltd.
India’s very first small finance bank, began its operations by launching about ten branches in the state of Punjab. The Capital Small Finance Bank as it is officially known aims at increasing the number of its branches to about twenty nine, in the current financial year of 2016-17.
Taking a step towards making India, as cashless economy, an e-wallet company, Freecharge, has partnered with Yes Bank and Mastercard. This partnership is in order to launch a new concept of Freecharge Go. This would be a virtual card, with the help of which consumers can pay for goods and services, at online shops as well as offline retailers.
This year, the economy of India would be majorly targeting at being self-sufficient and in the lieu of the same, te government of Andhra Pradesh has signed a Memorandum of Understanding (MoU) with Exim Bank of India, in order to promote exports within this state.
Moody’s, a Global Rating Agency, seems to have upgraded its outlook towards the Indian Banking System. This move is to stabilize its negative based on the assessments of about five drivers, which include improvement in operating environment, stable asset risk and capital scenario.
Rockefeller Foundation, a non-profit organization based out of America, has backed a private Equity Investor known as Lok Capital. This investor has a plan of investing up to USD 15 million in a couple of proposed small finance banks in India, over the period of next year.
The RBI, has reportedly given in principal approval, to about 11 applications, which were in favour of establishing payment banks. These banks may accept deposits, but they are to refrain from extending any loans.
With the chances of the economy and the cash inflow looking bright, the banking and investment industry shows great promise for aspirants.

The Most Bizarre Questions That Investment Banks Asked This Year

We are all aware about the road to a great career in Investment Banking isn’t complete without the biggest roadblock, which is the interviews. For any freshly minted candidate, there always is a string of common run of the mill questions revolving mainly around their weaknesses, the 5 year plans that they intend to work on and so on. But, what usually catches the candidate off guard, is the list of weird questions. While these questions may be weird and a tad bit scary, they are the absolute crucial determinants, of whether you get that coveted position, or not.
Here’s a list of freakishly weird questions, which some of the top-notch banks asked in the year of 2016:
1. “How would you value a cow using a discounted cash flow (DCF) analysis?”
The above question, as out of the blue as they come, was asked to a potential candidate in an interview round, in London Based Firm last year. While any DCF question, is extremely inevitable in corporate finance interviews, there are those Bovine DCF questions, which are not.
2. “How many pairs of shoes do you expect to wear over your lifetime?”
An interview is absolutely incomplete, without any brain teaser questions, which ensure that your analytical skills undergo a rigorous jog. This was most expectantly one of them. While the internet service engine, Google, might deem such questions as a tad bit irrelevant, all the to banks out there just cannot get enough of these. The above question was reportedly asked in an interview for risk management at Nomura.
3. “What would you do if we gave you 10,000 Euros now?”
If you are a finance aspirant looking to get into the field of investment banking, you would surely be expected to know all there is about Investments. Any bank, regardless of its position, expects the candidates to have some very solid investment ideas in response to questions like these. The above question was asked during an interview wit ICAP.
4. “Who is your best friend?”
This question was asked during the final round of an interview, conducted by Credit Suisse. In their attempt to go beyond the technicalities and mundane aspects, many HR managers try to ask unconventional questions. The above question was asked in a similar vein, in order to know about the candidate, through the eyes of someone, who is close to them.
5. “How would you manage the portfolio of an astronaut that will be isolated from earth for the next 10 years?”
This is another question, in the line of most out-of-the-context yet, relevant questions. This one in particular was asked during an interview about securities at Goldman Sachs and the student who was asked all of these questions said it was the best interview of all times.
As the popularity of Investment Banking, as a field grows, the number of professionals wanting to be a part of this field also multiplies. In order to look for the perfect candidates, these top banks usually end up asking very out of the box questions. To become thoroughly industry endorsed, professionals usually pursue certification training programs, Join Imarticus Learning, here we offer proper training to crack such interviews.

Industry Report: Banking Sector in India Part – I

This article will be principally dealing with the basic understanding about the banking sector, specifically in India and all the aspects and components of the size of the market. According to the Reserve Bank of India, the banking sector in India is believed to be sufficiently capitalized and well regulated. Recent reports state that the financial and economic conditions in our country, are way better in comparison to the other countries, in the present times. This basically puts the Indian economy, which is considerably stable, against the other alarmingly unstable and equally dysfunctional economies, all over the globe. Studies conducted in various fields like Credit, market and liquidity risk conclude that the banks in India have shown a general tendency, of being resilient and have been able to withstand the global economic turmoil really well.
This may have been a result of the various innovative banking models, for instance, the payments and small finance banks, which have had a positive impact on the Indian banking industry in the recent times. In the financial year of 2015-2016, about 10 small finance banks and around 11 payment banks, have received the principle approval from the central bank. This is a part of the new measures put in place by the Reserve Bank of India, which show great signs of going a long way, in terms of helping in the restructuring of the domestic banking industry. Let’s talk facts and numbers now, in keeping with the same we need to focus on the numeric aspects of the banking units across the country.
Primarily, the Indian banking system is made up of around 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1589 urban cooperative banks and around 93550 rural cooperative banks, in addition to the existing cooperative credit institutions. 80% of the entire market, is supposedly controlled by the public sector banks, thereby evidently a very small share of the market is left in control of the private counterparts. While on the other hand, every bank out there has begun to encourage their customers, in order to manage all of their finances using mobiles phones.
While there have been a number of predictions and assumptions in terms of credit growth, especially with the current banking situation, as well as the Union Budget almost being right around the corner. There are various estimates made, among which the Standard and Poor, have gone on to make the estimates, that the credit growth in the Indian banking sector, is likely to improve to 11-13 per cent in this financial year, that is 2017. This is a great news in terms of growth and progress, from the past three years, when the second half of the year, 2014, showed less than 10 per cent credit growth. As the future prospects of the Indian banking sector seem extremely bright and by extension, so do the job prospects in terms of Corporate Finance, Investment Banking and so on. This is why many finance enthusiasts have begun to turn to professional training institutes like, Imarticus Learning, that help them achieve the perfect career roles.

Banking Domain Primer

By Zenobia Sethna
The Banking, Financial Services and Insurance (BFSI) sector is the backbone of the Indian economy employing approximately 4.5 million professionals. If you are looking for a career in Finance, you will see vacancies listing “Banking Domain Knowledge” as a requisite. But what does it mean? Banking itself can be of multiple types based on products and services on offer and the type of customers serviced.
For simplicity, one may define banking domain knowledge as the body of knowledge dealing with how different banking segments operate – across customers, sales & distribution, products & services, people, process and technology. This definition basically covers the end to end functioning of any bank.
Investment Banking Course
Let’s take a closer look at the operating model of a bank.
Banking Segments – Broadly we have four types of banks: retail banks, corporate banks, investment banks and private banks. These are known as Banking segments.
Clients – These are the customers who buy the bank’s products or services. These may be individuals looking to open a bank account or Institutions or other Banks looking for more corporate solutions or ways to invest their funds.
Sales and Distribution Channels – This includes how the bank reaches out to its customers to make sales. This could be through emails, phone calls, on the Internet, TV ads etc.
Products and Services – Products and services are the things the bank sells to customers for a fee. These would vary according to the banking segment. In retail banks, we would have products like deposit accounts and loans.
People, process and technology – Finally we have the three components that underpin all of the above. These are people, processes and technology. People includes job roles and responsibilities, organization structures; processes define how customer transactions are fulfilled and what procedures to follow, while technology defines the IT infrastructure and systems that support the business.
Imarticus Learning offers many courses on Investment Banking and Retail Banking covering the multi-faceted functioning of these banks and their products and services. Contact us to know more.


Investment Banking – Why do Sellers use an Investment Banker? (I)

If you looked at the economic times headlines today, you would have read how the Government has shortlisted three Investment Banks, also known as Merchant Banks, to manage the stake sale in the SUUTI portfolio companies. (Source)
This means the government has mandated Citibank, Morgan Stanley, and ICICI Securities, to sell their minority stakes in various listed and unlisted entities on their behalf. What does this mean? And how would the transaction take place? In this post and the next series of posts, we will try and understand how a deal takes place, what happens and what Investment Bankers actually do. These posts will help you prepare for Investment Banking and Corporate Finance interviews as this is a common question. This is part of our interview prep module in our FMVC course at Imarticus Learning, one of India’s leading Financial Modeling and Valuation courses.
Why do they need a banker at all?
I mean after all who knows your company best, you or an outsider. You, of course. And why should you really pay 4 percent of what you get to someone when you could do it yourself. Well Investment Bankers add immense value to a deal and this is why most major transactions use one.

  1. Most companies don’t have the expertiseInvestment Bankers bring with them specialized knowledge on how to sell something. How to package a product in a way that showcases it best to optimize value. But how do they know the company well enough to do that? Well, they work very hard to gain both a broad working knowledge of the industry and specific knowledge about the sector. So yes, while you know your company very well, they probably know the industry, your competition, both domestic and international as well as you do and perhaps even better in some cases.
  2. Most companies don’t have the time– Are you going to focus on running the company or selling it. Selling a business is an extremely time consuming process from gathering all the information, to putting it together in one place, to contacting buyers, scheduling meetings, doing site visits and taking care of documentation. It’s also an important job; you can’t just put your EA on it, however good she might be. So do you pull your most efficient person out of their current job, or are you better off hiring someone who does this day in and day out?
  3. Being objective– Value is a very subjective thing. You might believe your company is work x but the market and the buyers might value it at Y.  Because you are too close to the transaction, sellers find it very hard to take an objective view because the value of a company is marred by conflicts and emotions. Yes, finance is a minefield of aspirations, attachments, ambitions, hard work, years of toil and legacy. Less said about inflated egos the better. So having a banker that can assess value from the outside is not just helpful but critical in achieving your objective.

 

Introduction to Investment Management

What is Investment Management? What does the investment management industry constitute?

The world of finance can be complicated. To simplify for the sake of understanding, let us consider the financial world as broadly constituting of banks – (retail, commercial, and investment), insurance companies, and investment managers.

Banking: Retail and commercial banks are the ones most people are familiar with and are mostly straightforward. They take in money through deposits from customers, other banks, and shareholders. They then distribute this money through credit cards and loans to individuals, companies, and other banks.

Retail and commercial banks make money on the interest charged on these loans. Investment banks on the other hand are more complicated. They allow their clients, which include investment managers, to trade on the financial markets. They also deal with IPO, mergers, and acquisitions.

Insurance: Insurance companies take in money by charging for private and corporate insurance policies, in return for against the unexpected. They in turn are protected from being unable to payout on policy claims by moving money to a reinsurance company and therefore reducing exposure.

Investment Management: Investment managers also known as fund or asset managers do as the name suggests – they manage investments of private investors, corporates, banks, or insurance companies. Investment managers make their clients’ money grow by using investment banks to buy and sell investments.

Let us consider the funds managed by an investment manager as raw material whether in shares, bonds, commodities, or derivatives, and an investment manager as a machine that converts this raw material into a product by using a series of processes. The product is a fund. The goal of the fund is to make money for the investors. Thus, an investment manager uses an investor’s money to make money.

These processes vary greatly and depend on the investment strategy used. E.g.: passive vs. active investment. However, the principle remains the same. The fund aims to make a return by balancing risk and rewards and thus, in a process-driven manner ensures effective mobilization/channeling of its resource i.e. money from investors.

Thus, the players in the investment management industry can be classified into just two broad categories – the investment managers and the investors. Investment occurs directly i.e. investment contracts or more commonly via collective investment schemes. A mutual fund is a type of collective investment scheme. They provide an efficient way of pooling funds for investment purposes.

The Flow of funds in the asset management industry:

*PMS – Portfolio Management Services, AMC – Asset Management Services, WM – Wealth Managers.

What is the Investment Process? What role does the investment manager play? What is the role of portfolio performance measurement in the investment process?

Like any process, the investment process can be broadly classified based on four phases – Plan, Do, Check and Act. Similarly, it is pertinent to note that the investment management process, forming a part of the investment process cannot be improved without performance measurement. The following is an overview of the Investment Process.

From the above, it is clear that for the investment process to be complete it needs to be measured. This measuring of the portfolio performance should preferably be a part of the investment management process itself. In this case, it will contribute to improving the portfolio management process internally and thus contribute to process improvement. On the other hand, performance measurement can be undertaken by the investor as a part of the larger investment process. In this case, the same measures behave as a stricter audit function rather than a must-suited process improvement role.