European banks launched their investment banks in India during the 19th century. In the 1970s, the State Bank of India established a merchant banking agency. Afterward, ICICI bank also began offering merchant banking services. This is how investment banks plant their roots in India.
Investment banks in India are in major cities such as Mumbai, Delhi, Hyderabad, Bangalore. They have created an impact on the capital market of India. Investment banks are in high demand in India and are a great career option. It is gaining popularity as the FDI rates in India are increasing.
Do you also want to work for high-ranking investment banks? Here is a list of the top ten investment banks in India.
What is an investment bank?
What do investment banks do?
Types of investment banks
- Regional Boutique Investment Banks
- Elite Boutique Investment Banks.
- Full-service or Bulge Bracket Investment Banks
- Middle Market Investment Banks
Top 10 investment banks in India
International Investment banks in India
- J. P. Morgan
- BofA Securities India Limited
- Goldman Sachs
- Morgan Stanley
- Citigroup Global Markets India Private Limited
Domestic Investment banks in India
- Kotak Mahindra
- Axis Capital
- ICICI Securities Limited
- JM Financial Limited
- SBI Capital Markets Limited
What is an investment bank?
An investment bank is a financial institution or a branch of a bank. It helps people, businesses, and governments in raising capital. Investment banks collaborate with commercial banks and decide the market interest rates.
Front, middle, and back offices are the three divisions of investment banks.
Front Office
This department is most important in an investment bank. It also generates the most revenue in an investment banking firm.
Middle Office
This department handles fundraising and internal control systems.
Back office
The back office of an investment bank is in charge of all operations and technology. It verifies data of previous trades. The investment bank has in-house software developed by the technology team. The technical team handles technical support.
What do investment banks do?
- Investment banks offer services such as advice on trading and planning financial budgets.
- They take part in the secondary market by selling and trading assets.
- Investment banks offer financial services and advice to individuals, the government, and companies.
- Investment banks connect investors and companies. It makes financial development more productive and the company expands.
- Investment banks play an important role in the country’s economic development.
Types of investment banks
There are 4 types of investment banks as follows
1. Regional Boutique Investment Banks
These are the smallest banks. They also provide services concentrated in a specific region. These banks have a small workforce.
2. Elite Boutique Investment Banks.
These banks offer a full range of services but also have specialization in some aspects. For example, they provide services specializing in oil and gas M&A transactions.
3. Full-service or Bulge Bracket Investment Banks
An investment bank that offers a full range of investment banking services. Buying and selling, M and A securities services, financial advisory, and research, etc. Goldman Sachs, Morgan Stanley, Credit Suisse are examples of such banks.
4. Middle Market Investment Banks
They are larger than regional boutique banks but not as large as bulk bracket banks. These banks either provide a wide range of services or focus on specific aspects. They may provide services in more than one state or region, but they are not multinational.
Top Investment banks in India
International Investment banks in India
1. J. P. Morgan
J.P. Morgan is a leading multinational investment bank. It has been working in Mumbai, India since 1930. S and P Global rank it as the largest bank. It began by providing commercial banking services and spread into other sectors.
2. BofA Securities India Limited
Bank of America is an international investment banking firm. It has been incorporated in India since 1964. It has offices in Mumbai, Bengaluru, Chennai, and the National Capital Region of Delhi. Bank of America Merrill Lynch was the previous name for the company. This bank offers a wide range of financial services in India.
3. Goldman Sachs
Goldman Sachs serves India’s leading companies. It has corporate customers throughout the country. It has branches in Mumbai, Bengaluru, and Hyderabad. Goldman Sachs provides services such as investment banking, securities services, global banking, and markets.
4. Morgan Stanley
Morgan Stanley is a multinational investment bank. They provide different fund management, research, and investment banking services. It has offices in Mumbai and Bengaluru. They provide the best consultation and fundraising services.
5. Citigroup Global Markets India Private Limited
Established in 2000, CGM India is a subsidiary of Citigroup Inc. They provide services such as investment banking, securities trading, and market analysis. CGM India has a large team of experts with industry experience and a strong network. They have suggested several M and A deals. It is a member of both the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE).
Domestic Investment banks in India
6. Kotak Mahindra
Founded in 1991, it is India’s largest full-service investment bank. It provides services including financial advisory, equity, M and A advisory, infrastructure consulting. Kotak investment banking was a leading candidate for the sale of government assets. The headquarters of Kotak Mahindra is in Mumbai.
7. Axis Capital
Established in 2005, Axis Capital Limited is a subsidiary of Axis bank. It is one of the largest private sector banks in India. It offers many services in boutique and mid-market investment banking. Axis capital was before known as Erstwhile ENAM Securities Private Limited. It currently provides services, including equity markets, mergers and acquisitions, and investment banking. The headquarters of Axis Caps are in Mumbai.
8. ICICI Securities Limited
ICICI Securities is a technology-based company founded in 1995. It is a subsidiary of ICICI Bank. ICICI Securities has branches in 77 Indian cities. It offers institutional Brokerage, retail brokerage, wealth management, and financial product distribution. The headquarters is in Mumbai. It is expanding its operations by growing its network and offering a variety of services.
9. JM Financial Limited
JM Financial Institutional Securities Limited is a domestic investment bank, established in 1998. The headquarters are in Mumbai. They work in the domestic and international capital markets for Companies.
They provide services including raising capital, M and A, financial advisory, and private equity. It is also well-known for its Private Equity Services. It now works in the midmarket.
10. SBI Capital Markets Limited
SBI Capital Markets Ltd., established in 1986, is India’s leading domestic investment bank. It is entirely owned by the State Bank of India (SBI). SBICAP headquarters is in Mumbai. It also has 5 branches throughout India. Ahmedabad, Chennai, Hyderabad, Kolkata, and New Delhi.
It has five subsidiaries. SBICAP Securities Lim, SBICAP Ventures Lim, SBICAP (UK) Lim, SBICAP (Singapore) Lim, and SBICAP Trustee Company Lim. SBICAP provides a full range of investment finance and investment advisory services. They offer services such as structured Loan placement, Financial Markets, M and A.
