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Objective of this E-book

Investment Banking is one of the hottest career options in the finance sector. With growing
global economic instability, there is increased need for due diligence and well-governed deals
in the corporate sector. Hence, Investment Banking as a job is seeing surging demand.

This Ebook ‘Investment Banking- Highest Paying Job Profile in Finance’ seeks to explain the
nuances of this career, it's importance, and the skills required to make it big in this industry.
It is a must read for aspirants who are eying a career in Investment Banking.

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 Table of Contents

Introduction ..................................................................................................................... 4
Chapter 1: What is an Investment Bank? ........................................................................... 6
Chapter 2: Types of Investment Banks............................................................................... 7
Chapter 3: Structure of the IB ............................................................................................ 9
Chapter 4: Various Leading Investment Banks ................................................................. 10
Chapter 5: What does an I Banker do? ............................................................................ 12
Chapter 6: Why should you choose a career in Investment Banking jobs? ........................ 15
Chapter 7: Latest trends in IB .......................................................................................... 17
Chapter 8: The Hierarchy of roles in Investment Banking jobs .......................................... 18
Chapter 9: Qualifications required to become an Investment Banker ............................... 20
Chapter 10: Skills required for Investment Banking Jobs .................................................. 22
Chapter 11: A day in the life of an Investment Banking Analyst ....................................... 25
Chapter 12: Why is Investment Banking a Highly-paid job? ............................................. 28

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 Introduction

One of the usual days during

the lockdown, Devanshi
thought this is a good time
to catch up with her cousin
Riyanshi. While Devanshi is
a CFA aspirant, Riyanshi is
an analyst with one of the
bulge bracket Investment
Banks.
Devanshi had always
admired her cousin who was
her role model. Riyanshi’s
grit, determination and
splendid academic performance motivated Devanshi to pursue Investment Banking. However,
the latter had a very basic idea about Investment Banking as a career. Just like thousands of
other aspirants, even Devanshi thought Investment Banking was all about glamour and a
fat pay check for some standardized services.
Devanshi and Riyanshi connected over a video call and spoke about life in general. During
the course of conversation, they both shared their career plans and Riyanshi realized that
Devanshi had a very vague understanding of Investment Banking. She then decided to guide
her sister and explain the critical role that Investment Bankers play, the struggles they go
through, and the reason why they are paid so handsomely.
Riyanshi explained that
mergers & acquisitions and
IPOs are crucial events in the
corporate lifecycle and can
have a huge impact on the
company’s reputation. If the
outcome of these events is not
fruitful, a company can even go
bust. To ensure the desired
outcome, companies hire the
best possible consultants to
equip them with sound advice
backed by data and analysis.
Since IPOs and M&A deals are worth millions of dollars, they are willing to pay hefty fees to
highly experienced consultants. These consultants are none other than the Investment
Banks.

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The Investment Bankers at various levels perform thorough due diligence to help companies
pick the most optimal solution. This due diligence is a result of long hours of analysis with the
sole objective to help the company in the best possible way and maximize its gains.
Since the companies, who are also the clients for Investment Banks, are paying huge fees,
they should be convinced with the banker’s recommendations. Hence, they breathe down
the Investment Bankers neck to ensure that the job is performed meticulously. Investment
Bankers also need to perform various revisions and sensitivity analysis to make the due
diligence fool proof. This is what makes the Investment Banking jobs so strenuous and
cumbersome. Besides, the analysis and due diligence, Investment Banks also offer logistical
services like filing the prospectus, documentation for the M&A deals, creating pitch books to
win more deals, etc.
In a nutshell, Riyanshi was able to convince Devanshi that the glamour and prestige of
meeting the CEOs and CFOs of the top organisations, also comes with the huge responsibility
of helping them make huge profits. This justifies the lucrative pay packages that Investment
Bankers receive.
Devanshi was intrigued to know this. She wanted to know even more and their conversation
went on for hours. Let us take a look at all the details that Riyanshi shared with her sister
about a career in Investment Banking.

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 Chapter 1: What is an Investment Bank?

Investment Banking is a financial service

company or department of a bank that
offers advisory services to government,
individuals, and corporations.
It acts as a bridge between companies
(who need investment to run and grow
their business) and investors (who want to
invest their funds in the market). They
help new firms to go public.
In a growing economy where all the
companies want to raise capital through
stock and shares, Investment Bank with
their expertise helps these companies by
providing underwriting services, so that
businesses can maximize their revenue while staying within the regulatory requirement.
Primarily IBs handled only underwriting, capital raising, merger, and acquisition. However,
now they offer a plethora of services to their customers like equity research, market–making,
asset management, derivatives trading and FICC services. Fixed income instruments,
currencies, and commodities)

It helps their client in managing large projects, by identifying the risk associated with the
projects beforehand, thus saving time.

They also provide advisory services to their clients in relation to the restructuring
of the business, so that business can become more efficient and maximize its profit.

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 Chapter 2: Types of Investment Banks

Investment banks offer advisory and management services to massive and complicated
financial transactions related to capital issuance for companies as well as mergers &
acquisitions. The major work of Investment Banks also includes underwriting debt financing
as well as leveraged buyouts.
An investment banks can have a focus on specific services like IPOs, M&As,
corporate restructurings, and various types of financing. There may also have separate
departments that specialize in asset financing, leasing, leveraged financing, and public
financing.
The firms engaged in the investment banking industry are commonly classified into three
categories: bulge bracket banks, middle-market banks, and boutique banks. The classification
of investment banks is primarily based on size. “size" can be a relative term though. It may
refer to the size in terms of the average size of deals handled by the bank, the range of
operations or the number of employees.

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 ➢ Regional Boutique Banks

Regional boutiques are localized investment banks which just have a handful of employees.
These investment banks have their operations limited to a particular province or region.
Mostly they do not offer all the services by the bigger investment banks, and tend to specialize
only in one area. For example, M&A deals worth $50 million to $100 million or even lesser
than that. They may even handle the deals only for a specific industry, say retail or technology.
The clientele that the regional boutiques cater to are mostly small to medium corporations
headquartered in the particular city or region.

➢ Elite Boutique Banks

Elite boutique investment banks operate at a larger scale compared to the regional boutique
banks. The value of the deals that they manage, is usually more than $1 billion. However, like
regional boutiques elite boutiques also do not offer an entire range of investment banking
services. They may just specialize in M&A deals or asset management. Elite boutiques have
considerable international presence with operations in more than one country. However,
they don’t operate on a global level.

➢ Middle-Market Banks

As their name indicates, middle-market banks are somewhere in between the regional
boutique banks and the huge bulge bracket ones. The size of deals that they handle can range
between $50 million to $500 million. The major difference between middle-market banks and
boutique banks is that they offer a relatively larger range of services, which includes asset
management, financing, M&A deals, restructuring deals, IPO, etc. However, they still do not
have a multinational presence.

➢ Bulge bracket Investment banks

These are the massive investment banks with a global presence. They offer an array of
investment banking services and have large offices with a huge employee base. The bulge
bracket investment banks follow a hierarchical structure. Most of the bulge bracket
investment banks handle multi-billion dollar deals and their clientele involve Fortune 500
companies. To expand their operations, the bulge bracket investment banks also do cross-
selling of financial products, and have separate commercial and retail wings for the same.

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Chapter 3: Structure of the IB

Investment banks are primarily divided into three

main sections: front office, middle office, and
back office. The criterion for division is usually the
nature of daily activities that they handle.

➢ Front office:

The main activity of the front office is to create

the business and generate revenue. M&A
advisory, consulting on capital raising, research,
sales and trading are the typical activities in the
front office. The members handling the front
office are performing customer facing roles.

➢ Middle office:

The middle office is responsible for risk

management, treasury and information
technology. This division also checks whether the
deals struck by the front office are in compliance
with the agreements. They also calculate the
profits and losses of each deal.

➢ Back office:

The back office offers the support function and is

the backbone of efficient functioning of the
investment banks. It handles human resources,
office management, and customer service.

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 Chapter 4: Various Leading Investment Banks

International Investment Banks with presence in India

Name Services
GOLDMAN SACHS Investment Banking, Financial Services
JP MORGAN CHASE Investment Banking, Financial Services
CITIBANK Investment Banking, Financial Services
MORGAN STANLEY M&A advisory, Capital Raising, Market
Analysis
BANK OF AMERICA MERRILL LYNCH M&A Advisory, Cash Flow Advisory, Capital
Raising
CREDIT SUISSE Investment Banking, Financial Services
DEUTSCHE BANK Investment Banking, Financial Services
UBS Advice and execution to a wide range of
corporates, financial sponsors and hedge
funds around the world.
BARCLAYS BANK Advisory, Financing and Risk Management
BNP PARIBAS Capital markets, Securities services,
Advisory & Treasury solutions
HSBC Investment Banking,Cash management, and
leveraged acquisition finance

Indian Investment Banks

Name Services
AVENDUS CAPITAL M&A, Due Diligence, Private Equity,
Investment Banking, Valuation Advisory
AXIS CAPITAL LIMITED Equity Capital Markets, M&A, Structured
Finance, Private Equity and Investment
Banking
EDELWEISS FINANCIAL SERVICES LIMITED Wealth Management, Asset Management,
Corporate Advisory
O3 CAPITAL GLOBAL ADVISORY SERVICES Corporate Finance, Investment Banking, and
Alternate Asset Management
VISIBLE ALPHA Buy side, sell side solutions
SG ANALYTICS Equity Research and Analytics
TRESVISTA Private Equity, hedge fund, Asset
Management, Equity Research

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REVAL ANALYTICS Data collection, financial model, software
development
ICRA Analysis, providing report
MAPE CAPITAL ADVISORS M&A and Private Equity, Corporate
Advisory, Debt, Real Estate Financing

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 Chapter 5: What does an I Banker do?

Those who want to build a career in financial services often opt for the highly coveted
Investment Banking roles. The prestige and the glamour quotient associated with being an
Investment Banker makes it a sought-after one. However, it is imperative to understand the
core tasks performed by an investment banker to get a better perception of the role.
So, what are the functions that an Investment Banker performs and what are their areas of
expertise?
The investment banker acts as a capital markets consultant to corporations and governments,
instead of just individual investors. Therefore, the functions that they perform are relatively
complex and demand high-level skill sets.

➢ Raising Capital:
Investment Bankers should evaluate the likely
market demand, the existing market
conditions, investor appetite and experience,
benchmark offerings and the flow of news.
Considering all these conditions, investment
bankers need to draft a prospectus with a
price range that reflects investor demand.
The institutional investors express interest at
a certain price and place the order. Thus, the
book of order is created. The investment
bankers justify a price from this list to ensure
the subscription of entire offer. Stocks or
Bonds are then allocated based on the
subscription.

➢ Underwriting deals:
The Investment Banker also gives
commitment to the company to help
it raise the capital. There are three
major types of commitments that the
investment bank gives: Firm
Commitment, Best Efforts, and All-Or-
None. The Firm Commitment entails
that the Underwriter agrees to buy
the entire issue at a given price. In
case he fails to get the issue sold
completely, the remaining shares
would be bought by the underwriter.
In the best efforts, the underwriter

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tries his level best to sell the maximum number of shares at a given price. However, there is
no legal obligation on the underwriter for getting the issue sold. Thirdly, in an all-or-none
commitment, if the entire issue isn’t sold at a certain price, the deal is declared null and void
and the underwriter is not paid.

➢ Private Placement:
Private Placement is an alternative to an initial public offering (IPO) for a company seeking to
raise capital for expansion. Rather than selling the shares in an open market, the private
placement involves the sale of stock shares or bonds to pre-determined investors. These
investors include wealthy individual investors, banks and other financial institutions, mutual
funds, insurance companies, and pension funds.

One of the biggest advantages of Private Placement is minimal regulatory compliance.

Investment Bankers are conducting private placements increasingly for start-ups as they get
access to money for growth initiatives without having to go through the long-drawn process
of IPO.

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➢ Mergers and
Acquisitions:
The roles of the investment
bank in case of M&A would
depend on whether the bank
is advising the seller of a
company ("sell-side") or
advising a representing the
potential acquirer ("buy-
side"). Extensive buyer-seller
negotiations are a typical part
of the M&A advisory by the
Investment Banks.

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 Chapter 6: Why should you choose a career in Investment Banking
jobs?

Investment banking as a career option is becoming increasingly popular among the aspiring
youth in India. These jobs are peppered with immensely complex tasks like mergers and
acquisitions, dealing with debt, stocks and bonds, securities and derivatives. One of the
biggest reasons for the growth of this career over the past few years in globalisation which
has led to a booming financial sector. India is a rapidly growing economy with numerous
multi-national companies setting up shop around the country.

This has opened up several available positions for students who specialize in investment
banking. As global markets increase levels of investment and people move close to their
retirement years, demand for investment bankers' expertise is expected to grow.

On a global level, The U.S. Bureau of Labor Statistics (BLS) reported an 11% growth in the
industry and by 2020 an average growth in all the occupations present within the financial
industry and professionals like investment bankers, financial agents, sales associates have
been witnessed.

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 Chapter 7: Latest trends in IB
Investment Banking has undergone a lot of changes owing to the changing macro
environment and technological disruption. To be a successful Investment Banker, you must
be abreast with the latest trends, because that would heavily influence the execution of the
deals and the way your operations are handled.

The macro environment is becoming quite challenging for the Investment Banks to operate
in. Rising operating costs, economic slowdown and high requirement for compliance calls for
adoption of new practices for efficiency. The Investment Banks also need to keep up with the
evolving trends to face the challenges.

Let’s take a look at some of the latest trends in Investment Banking:

➢ Customer Focused:
Many Investment Banks have been only prioritizing the sales of
its products and services. However, now the trends suggest that
for the business to thrive, the focus must be on customer
satisfaction. Hence, the banks have now begun to communicate
with the clients, developing closer relationships with them and
updating them with every possible development. Investment
Banks are investing in technology for enhanced customer
service.

➢ Technological Dependence:
Now that disruptive technology is an integral part of financial
services, even Investment Banking is warming up to it. With the
emergence of cybersecurity, cryptocurrency, AI, analytics and
digitization, investment banking is all set to embrace newer
innovations. Hence, investment bankers must know how to
implement the latest technological developments.

➢ Automation:
Typically, investment bankers have to spend long hours
collecting data and processing it. Data is an important part of
investment banking to close deals. Hence, automation is being increasingly adopted to ease
the burden so that the bankers can close more deals faster. It would also help them to focus
on strategic aspects. This also implies that investment bankers have to develop more of
problem-solving and critical-thinking skills rather than just number crunching.

➢ Stringent Regulatory Compliance:

Investment Banking has to maintain strict compliance in most of the aspects in the wake of
rising fraudulent activities, financial market crimes and regulatory breaches. Investment
Bankers thus have to be more vigilant of their actions and consider regulatory standards at
every step.

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 Chapter 8: The Hierarchy of roles in Investment Banking jobs

The career path of Investment Banking has always followed a certain pattern. The hierarchy
of designations is very well-defined and hasn’t changed over time. There may be slight
variations in the titles that each bank follows, however, on a broader level, they can be
arranged according to six major levels.

➢ Intern:

The Investment Banking internship is the

stepping stone to a glorious career in finance.
It is at this level that you are groomed for the
real challenges in the professional world.
Interns are the candidates who are fresh out
of college and want to learn the ropes of
investment banking on the job. Many
students also choose to be interns before
completing their last year in the college.

Most of the organizations expect that the

interns will be well-versed with basic three-
step financial modelling, advanced excel and
power point or equivalent presentations.
Most of the times, as interns you have to work
on a specific project for a predetermined
period. There is an entire series of interviews
and assessments that take place for an
internship in a reputed Investment Bank. You
can bag an internship either by online
applications or through networking.

➢ Analyst:

As an Analyst in an Investment Bank, you will

be responsible for managing most of the
administrative tasks like handling the data,
documents as well as keeping a track of
buyers and sellers. You would also be involved
in responding to the clients and potential
clients as well as taking requests from them.
The Analysts in the Investment Bank draw salaries as well as other incentives like
performance-linked bonus.

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 ➢ Associate:

After working for two-three years, the Investment Banks promote the best-performing
analysts as Associates. The responsibilities of the Associates are three-pronged, which
primarily includes administrative, presentations, and analysis.

As an Investment Banking Analyst, most of your time would be spent in preparing specific
presentations known as ‘Pitch Books’. A Pitch Book is a sales document containing the
capability profile of the Investment Bank, their products and services, and other benefits that
they offer to the clients.

The analytical tasks include valuation, credit modelling, capturing historic company data,
financial modelling, etc. Meanwhile, the administrative tasks could also include mundane
work like arranging stationery, setting up meeting rooms, maintaining a task list of team
members.

➢ Vice President:

The role of a Vice President in an Investment Bank is very similar to that of a Project Manager.
They do not get into the execution level of the tasks like an Associate or an Analyst, but
supervise the progress of a deal. It takes 3-4 years on an average for an Analyst to get
promoted to the designation of being a Vice President. As a Vice President, you will act as a
bridge between the Directors and Managing Directors as well as the Analyst and his team.
You will have to take the requests from the top leadership and get it serviced through
associates and analysts. A Vice President in the Investment Bank wears many hats. He has to
present the Pitchbook to the clients, foster long-term client relationships as well as ensure
that the deal, if bagged, is executed well.

➢ Director:

Also known as the Senior Vice President, Director is one of the senior most officeholders in
an Investment Bank. His role is a blend of Vice President and the Managing Director. However,
the dynamics vary across Investment Banks. Depending on the situation, the Director can
either focus more on client acquisition, or he can focus more on project execution like the
Vice President. However, the more clients a Director is able to win, the closer he moves to
being promoted as a Managing Director. Being a senior banker, the Director understands the
nuances of the industry very well and can even forecast the deals in the sector. They can
predict the trend of capital requirement by the companies and pitch them a deal ahead of
time.

➢ Managing Director:

The Managing Directors in the Investment Banks spend most of their time in negotiating and
closing top notch deals. They also spend a lot of time acquiring big ticket customers. In a
nutshell, the Managing director is the ultimate designation in an Investment Bank. The banks
continue with the same Managing Director as long as he keeps winning high profile clients.

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 Chapter 9: Qualifications required to become an Investment Banker

Investment Banking derives from many different backgrounds but the substantial foundation
in mathematics is important. To do an Investment Banking you may have a bachelor’s degree
in finance, mathematics or accounting or can be from other fields.

Investment Bankers go through an intense training through their organization, freshers

basically start as an analyst after training they are introduced to the principles of markets,
risk, financial modeling and accounting. They also learn skills like communication,
presentation skills and negotiation. Master of Business Administration degrees (MBAs) is the
most popular among the investment bankers.

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 ➢ Chartered Financial Analyst (CFA) Certification
CFA Certification is a popular finance certification. This certification is conferred by the
Chartered Financial Analyst Institute to professionals. In order to qualify, one needs to appear
for CFA exam that tests an individual on his knowledge and aptitude in finance. Equity
research is a very integral part of investment banking which is covered in details in the CFA
curriculum. Investment banking requires a person to be broadminded and global. This is
achieved marvellously through CFA. The high ethical and professional standards that are
imbibed in the coursework, gain the confidence of the recruiters as they want international
players who are capable of understanding nuances of business in different parts of the world.

➢ Certified Public Accountant (CPA) Certification

Certified Public Accountant certification is an advanced accounting accreditation that is given
by the reputed American Institute of Certified Public Accountants to professionals in the
accounting and finance industry. The Indian equivalent for this is the highly prestigious
Chartered Accountancy or the CA program.

Accounting is a crucial part in Investment Banking especially in M&A advisory and the
valuation perspective. However, it is recommended that a CFA also accompanies your CPA or
CA to complete your candidature for an Investment Banking job.

➢ Financial Risk Manager (FRM) Certification

FRM certification is among the most generally accepted credentials in the field. It is a
remarkably well-formulated course that is also updated regularly to incorporate any new
improvements and developments in the area of risk management and quantitative analysis.

In addition to the above degrees, you can also go for two comprehensive courses offered by
NSDC and IMS Proschool. They are:

• PGP in Investment Banking & Capital Markets

This niche qualification for candidates who wish to make a mark into the investment
banking industry, with a clear focus on technical skills and theory. The program spans
over a period of 10 months. The emphasis is on project-based learning and the
curriculum covers critical subjects like Equity Analysis, Credit Analysis, Private Equity,
Valuation concepts, Portfolio Management, etc.

• Certificate in Investment Banking Program

Certificate in Investment banking bridges the gap for candidates, to leap into the
financial services space with the requisite skill sets. The course covers the basics of
Financial Analysis and Accounting as well as Corporate Finance, Valuation and
Financial Modelling in detail. Certificate in Investment Banking Program is suitable
for undergraduates and also has a special module to understand the nuances of
Mergers & Acquisitions.

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 Chapter 10: Skills required for Investment Banking Jobs

The Investment Banking jobs are undoubtedly the most lucrative and rewarding, they can also
be one of the most demanding jobs, physically and mentally. Executing complex tasks,
ensuring compliance and perfect administration can be extremely challenging. As a banker
you also have to maintain superior performance.

Investment Banking also requires varied roles to be performed. Sometimes it is transacting

with the clients or preparing pitch books, while sometimes it can be establishing business
plans or conducting due diligence. The banks thus require individuals with varied skill set to
meet the work demands. The skills are not only technical, but also involve mental strength
and problem-solving abilities. In a nutshell, the skills required for being an Investment Banker
is a blend of tangible and intangible.

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Here’s a list of Educational qualifications, Technical Skills as well as Soft skills that are required
to breakthrough into the world of Investment Banking.

➢ Educational Qualifications

A Master’s degree in Finance, Management or Accounting can be the perfect starting point
for an Investment Banking role. Even a specialization in Statistics and Economics can give you
an edge over others because a lot of analysis requires building a mathematical or stochastic
model. Besides this, a Finance and Investment specific degree such as the CFA or the CA is
highly desired.

➢ Soft Skills

To design and execute the complicated deals, you need to possess a high-level of logical
reasoning and problem-solving abilities. This is what will enable you to perform your tasks
with agility and also encourage you to learn more aspects of investment banking. Besides,
you must also approach a task analytically to design a solution that can tackle every possible
issue that can arise. Along with all this, you must also have an insatiable quest for knowledge
as the learning curve in Investment Banking can be really steep.

➢ Technical Skills

The Technical Skills that are required for a fulfilling career in Investment Banking range from
expertise in Excel and PowerPoint to advanced subjects like Valuation and Report Writing. Let
us take a look at each of them in details.

● Financial Modeling

Financial Modelling for investment banking involves financial statement modelling,

Discounted cash flow (DCF) analysis, accretion/dilution modelling for mergers or
acquisitions (M&A). This helps in various enterprise value calculations and estimations
that enable the valuation of assets. There are various institutes which offer Financial
Modelling courses either through classroom or online modes. You can learn the tools,
techniques, and methodologies for Financial Modelling so that you can conduct the
due diligence required for handling mergers and acquisitions.

● Report Writing Skills

As an Investment Banker, you must have the ability to express your analysis in a lucid
and detailed manner along with appropriate data interpretation. This is called Report
Writing skills. The report could be about Equity Research, wherein you need to write
about the industry, the company, its products/services, financial performance, stock
performance, recommendations, etc. Whereas in an Industry analysis, you may have
to conduct a SWOT and PERT analysis, study the macro trends, economic policies and
metrics evaluation. You can either learn Report Writing through practise or take a
course regarding business or finance writing. As an Investment Banker you must also

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 have impeccable language skills, and storytelling ability besides analytical or numeric
skills.

● Data Analytics

Data Analytics has made a big presence in the world of finance and Investment
Banking isn’t untouched. While financial modelling and analytics are typically different
activities, there are certain common grounds. Both the fields demand a strong grasp
over Excel, Data Organization, Information Management and Mathematics. A
combination of data analytics with finance can offer more profound insights to the
analyst. If there are large datasets and complexity of the problem during the financial
modelling or valuation stages, Data Analytics can make the process much more
streamlined along with precision. It will always pay off if you equip yourself with Data
Analytics skills for managing the intricate deals with confidence.

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 Chapter 11: A day in the life of an Investment Banking Analyst
As Investment Banking is one of the most sought-after jobs, it is bound to be highly prestigious
and illustrious. However, it is also characterized by long hours at work and stressful schedules.
Sometimes, a typical workday can stretch up to 16 hours. Over the week, the total work hours
can be as long as 90-100 hours.

Three main reasons for such demanding working hours in Investment Banking
are:

➢ Unpredictable work:

It is very challenging to plan the deal execution in Investment Banking with accuracy. It is very
different from project planning. The tasks associated with deals and M&A analysis can involve
a lot of last-minute alterations, changing scenarios. There could be a sudden change on the
regulatory and economic front, or also any company specific change. Moreover, internal
discussions may also lead to a change in the
workflow resulting in higher working hours.

➢ Client demands:

Most of the times clients of an Investment

Bank are highly demanding. They pay hefty
fees to the banks and want a lot of perfection
in the work. If they aren’t satisfied with any
detail in the model or report, they can also go
to the extent of cancelling the deal.
Sometimes, they can even call an analyst at
odd hours or over the weekend.

➢ Multiple Projects:

One of the key reasons of long hours in an Investment Bank are multiple projects being
handled simultaneously. In large Investment Banks, an analyst can typically handle more than
five projects at a given time. With each project at a different stage of the pipeline, it is
challenging to manage all the tasks meticulously and that can require huge time
commitments.

As an Investment Banker, you must have the tenacity to handle the tedious routine and still
deliver the expected results. Once, you are able to understand the nuances of the work and
pull yourself through long hours, you brace yourself for a rewarding career.

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 As a candidate, you may be curious to know how
an Investment Banking Analyst would be. Let’s take
a look at a day in the life of Riyanshi, the
Investment Banking Analyst:

9 AM: Get up and check emails to see if there is any

urgent task at hand or does she need to reach
office early

10 AM: Walks into the cubicle, checks more emails,

organizes things and gets started for the long day
ahead

11 AM: Reads her senior’s feedback on the analysis

of the deal she is currently handling. Addresses the
same and starts preparing another pitchbook for
the presentation next week.

12 Noon: Takes a short break from work to read

about the latest industry updates, regulatory
changes, potential clients or any other detail
related to the deals she is working on.

1 PM: Goes for a quick lunch with colleagues. Many

of the days lunch has to be done on the desk due
to urgent presentations that need

1:30 PM: Jumps on a conference call post lunch for

a discussion on Initial Public Offering (IPO) which
includes clients, lawyers and senior bankers.
Riyanshi decides to listen well and absorbs all the
detailed inputs.

2 PM: Sits will team members to work on the IPO papers. Co-ordinates with the legal and
Equity Analysis teams to get the pages on legal disclosure and financial analysis ready. The
entire workflow takes some hours for Riyanshi.

5 PM: After the discussions and putting in the work on papers, Riyanshi prints out the draft
and scans for any errors. Some of the flaws might be missed on the first glance, so this process
is ideally done thrice by Riyanshi. Then she passes on the draft to an Investment Banking
Associate for another round of check and comments.

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6 PM: While she waits for the comments from the Associate, she also checks on the deals that
she is working on. Currently, there are two of them.

7 PM: She receives the IPO papers from the Associate with her comments. Riyanshi makes
the necessary changes and passes it on to her team.

8 PM: Goes for a more relaxed dinner

9 PM: Comes back to her cubicle, checks her emails and updates her senior about the progress
at work. As there is nothing urgent, Riyanshi heads home, while constantly checking for
further updates.

Disclaimer: This is a typical day in a large investment bank and workflow at other Investment
Banks may vary. Also, this is a relatively lighter day at work. When there are too many projects
going on, the working hours get even longer.

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 Chapter 12: Why is Investment Banking a Highly-paid job?

Roles 0-2 Years’ Experience >5-10 Years’ Experience

FINANCIAL ANALYST 2.4-3 LPA 6-10 LPA
RESEARCH ASSOCIATE 3.5-5 LPA 6-10 LPA
EQUITY RESEARCH ANALYST 6-10 LPA 15-20 LPA
INVESTMENT BANKING 3.5-6 LPA 15-20 LPA
CREDIT ANALYST 3.5-5 LPA 5-9 LPA

*The salaries mentioned are representative of the industry and may change depending on
companies and location
Investment bankers are some of the most handsomely-paid professionals on an absolute
basis in today’s age. The compensation of Investment banking professionals has two main
components:

➢ Salary
➢ Bonus

The bonus is an integral part

of the bankers pay package
across all levels. However,
for more senior level
bankers, the bonus can be
multiple times of the base
salary. It usually ranges
Graph Source: Payscale.com between 20% and 60% of the
basic pay. In favourable
market conditions, one has
even heard of bonuses up to
100% of the basic! However,
due to the overall economic
slowdown, the market is not
offering such generous
bonuses. However, things
may improve as the market
picks up again.

Graph Source: Jobted

The reason why bankers take home a hefty pay package is because the I-Banks work on highly
crucial transactions that generate big fees. In lieu of such complex and critical work, they

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 need to be smart, hard-
working, and highly skilled –
and thus, well-compensated.
Also, they are highly-paid
because the work is extra
stressful nature of the job,
demands high-discipline, and
the unending hours at work.

Graph Source: Glassdoor.in

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