As many UK and US investment banking staff get used to the idea that 'our jobs' are going 'over there', CityNews thought that it would have a quick look at the investment banking scene in India.
Goldman Sachs' Indian investment banking affiliate, Kotak Mahindra Capital, has confirmed that it will hire more staff in 2005. Ajay Sondhi, the firm's Vice Chairman, has said that 'we will be adding between 10% and 20% more people during the course of this year'. The Goldman affiliate currently has around 110 people in its investment banking and equities trading businesses.
Investment banks are really gearing up in India as fees are heading North. Analysts estimate an increase of up to 50% on the $150m of banking fees generated last year. And the Universal banks, like Citigroup and JP Morgan, are grabbing increased market share in India by using their lending relationships to bag lucrative M&A and underwriting deals. Neither bank has an investment banking venture with an Indian partner, but both are at the top of the rankings due to the strength of their corporate relationships.
Citigroup has been top M&A adviser in India for the last two years and JP Morgan has come from nowhere into third place in 2004. Goldman, Merrill and Morgan Stanley, all of whom have entered into joint investment banking ventures in India, are also big players.
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