All businesses adopt various ways to expand. Such practices include mergers, investing in other companies, stock trading, raising additional capital. All these activities to be dealt with precision and expertise. How do companies arrange the required expertise? The answer is Investment Banking, In the coming sections we have for you investment Banking guide and full details. This term is generally associated with financing long term needs. Investment banking emerged from merchant banking. Investment bankers are regulated by an association of Investment Bankers of India (AIBI). AIBI ensures compliance with banking regulations, promotes ethical practices, and supports the interests of its members.
What Does Investment Banking Have for you?
Besides being a demanding and high-paying career opportunity, Investment Banking as a profession focuses on developing an individual skill set, as an investment-banking professional, you develop a skill set that helps you in long run even while entering a different field. The following skills comes complementary to those who pursue investment banking courses: –
- As an investment banker you develop Financial Modelling and Valuation skills to understand and analyse financial statements, you therefore become trained in forecasting future performance.
- Investment bankers become experts in understanding of markets, macroeconomic trends, and industry dynamics. They assess risk and consider regulatory impacts. This helps them in Market Analysis and Deal Structuring.
- By dealing with numerous clients and having encountered various challenges to deal with them, Investment bankers develop excellent interpersonal skills and can maintain strong client relationships.
How Is Investment Banking Different?
Investment Banking is a type of banking but unlike the usual banking services, it comprises large and complex financial transactions for big companies. Investment Banking encompasses the following services:
- Companies time-to-time need to raise capital from the market, here investment-banking assists a company raising stocks, bonds, or any other security in a secured and feasible manner,
- Investment bankers provide advisory services for mergers, acquisitions, and corporate restructuring.
- Investment bankers provide guidance on reorganizing companies, optimizing capital structures, and improving operational efficiency.
- Investment banks facilitate equity financing, helping companies raise funds through stock offerings.
Why Do Companies Require Investment Banking Services?
Investment Banking is essential for businesses that have complex financial landscapes. The demand for Investment bankers continues to evolve due to following factors:
- As the economy expands, businesses seek capital for expansion, mergers, and acquisitions. Such businesses need assistance from these experts to facilitate these financial transactions.
- Companies require assistance with the underwriting securities, structuring deals, and managing market activities.
- Investment bankers are well-equipped with the changing financial technology, data, and analytics which make them perfect to meet the client centric demands.
How To Get You Investment Banking Qualification
The average Investment Banking course fee in India ranges from INR 50,000 to INR 1,00,000. As an individual who aspires to become an investment banker, you can opt for any of the below choice: –
- CIBP Certification stands for Certified Investment Banking Professional. This certification is offered by the Investment-Banking Council of America (IBCA). If you have cleared your secondary education then you are eligible to sit for this certification exam, there are 50 multiple-choice questions. You have a 365-day window to pass your exam after registration.
- There arevariousDiploma programs and various Indian institutes that offer other relevant diploma courses in banking and finance such as Leverage Edu that provides study abroad counselling and offers investment banking courses. Diploma courses require 50% marks in class 12th from any background. These courses can be completed within 6 months to 1 year.
- Entering into top investment banking colleges in India such as NMIMS, St. Joseph’s College of Commerce, Christ University, Annamalai University. UG courses typically require 50% marks in 10+2, preferably from a commerce background. They offer full-time degree programs with a specialization in investment banking. You are eligible to pursue these UG Courses if you have passed your class 12th preferably in commerce degree. Similarly, there are Postgraduate degrees that give investment-banking as a specialization.
- Another option is CFA certification which is ideal for candidates with a bachelor’s degree. CFA certification enhances career prospects in Investment Banking.
Investment Banking as a Career Choice
- When you decide your career, there are always various questions that may cross your mind and the first one generally is if your career choice will offer you a secured future? Well! This is a very subjective question because success is different for everyone, but one thing we all thrive for is increasing our value in the market as an individual so that we are never left off from any opportunity.
- Investment banking not only offers you a secured career but along with that it has a positive impact on your skill set. As an Investment Banker you become well-trained in analysis, such that you can now go for jobs of Financial and business analyst. The initial package is 7 to 8 LPA in India.
- You develop Client-Negotiation skill, by which you can attract both national and international clients to use you service, meanwhile you could bring out creative solutions for your client’s problem.
Investment Banking as a profession has an immense future, As the economy expands and competition within an industry expands. Financial transactions such as mergers, acquisition, and raising capital become the need of the hour for any business. To cater these services, they would need Investment banking services.
