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Interested in investment banking?

education Updated: Apr 25, 2012 12:50 IST

Hindustan Times
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The lowdown
If you are interested in making money out of money, then you should seriously consider making a career out of investment banking. In other words, investment banking is essentially about matching the expectations of people who have the capital with people who need the capital. This can be structured at various stages of the life cycle of a venture starting from the ideating stage to the listing at stock markets. An investment banker advises clients on various options such as mergers, acquisitions and joint ventures etc. to optimise valuation. Since the investment rate in the economy has been a bit sluggish over the last one year due to concerns about political economy, the investment banking sector has reflected the same pace in its growth. However, this is also the time when a lot of work is being done in deal development that would translate to a healthy pipeline in the ensuing years. Investment banking has a huge prospect for growth in an emerging economy like India due to the presence of vast untapped sectors, high entrepreneurial energy and innovation possibilities for structuring win/win solutions

Clockwork
The day begins in the morning, around 8 and usually there are no fixed timings. On most days, it is a 12 to 14 hour work day spent doing research, analytics, reading, meetings, presentations, networking, team building etc. It also involves around 10 working days of travel in a month. A typical day in the life of an investment banking professional:
8am: Day begins in office
9am: Significant time spent on con-calls/skype calls across time zones
Noon: Brief the team members, prepare a report
8pm: Leave for home

The payoff
On an average, a fresher in this domain can expect a package of Rs 20 lakh per annum and there is no upper limit on pay scale as the same is directly proportionate to the value contribution of the professional to the size and value of the deals

Skills/TRAITS
* High research/analytical frame of mind
* Top of the line communication
* Widely read and informed and thinking out of the box - a natural innovator
* Should have ability to handle difficult situations and offer timely troubleshooting
* Should have a flair for analysing figures and forecast sales and budget
* Should have sound technical knowledge
* Should have good command over the English language

Getting there
One can follow this sector from any stream - science, commerce or arts. However, it is important to have competency in maths, economics and business studies on the path. A bachelor’s degree in business administration is a usual pre-requisite. You can follow it up with an MBA or choose to get some work experience. Either ways, you will learn a lot

Institutes and URLs
* Indian Institute of Foreign Trade, New Delhi
www.iift.edu
* Shaheed Sukhdev College of Business Studies, Delhi University
http://sscbsdu.ac.in/
* Guru Gobind Singh College of Commerce, Delhi University
http://www.sggscc.ac.in/
* Faculty of Management Studies, Delhi University
www.fms.edu
* Faculty of Management Studies, Delhi University
www.fms.edu
* Narsee Monjee Institute of Management Studies, Mumbai
www.nmims.edu
* IXLRI, School of Business and Human Resources, Jharkhand
http://www.xlri.ac.in/
* Institute of Management and Technology, Ghaziabad
http://www.imt.edu/
* Indian Institutes of Management, Multiple Locations
http://www.catiim.in/

Pros and cons
* Extremely challenging and intellectually stimulating job
* Money is good
* The profession can open the patjto entrepreneurship
* Helps in networking
* High-pressure job
* Involves long hours
* Excessive competition

In an emerging economy like India, prospects for investment bankers are very bright. Vast potential in entrepreneurial activity and various innovation possibilities make it attractive for those who want to join the industry Anoop Sharma, former Investment Banker (HSBC) based in Delhi