'It is a bloodbath'.
Investment banks from UBS to Morgan Stanley spent half a decade building their operations in India, betting that a growing economy would trigger a boom in mergers and stock sales. They’ve spent the last three years reversing that expansion.
Bloomberg News reports that the number of investment-banking positions in India has dropped by about 30% since 2010 - more than double the pace of global industry cutbacks in the same period - according to the Indian unit of recruiter Randstad Holding NV. Some firms, including Bank of America, have made even steeper cuts.
The reductions reflect the falloff in deals and equity offerings involving Indian companies, down about 50% by value from 2010, as the country’s $1.8 trillion economy slows and corporate debt rises.
More job cuts may come as big mergers and stock offerings remain subdued, people familiar with the matter said.
'It is a bloodbath at investment banks focusing on deals above $100m', said Vikram Utamsingh, a Mumbai-based managing director at consulting firm Alvarez & Marsal. 'It’s extremely difficult at this point in time to get hired as an investment banker in India. I don’t know how any bank will grow in this market'.
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