Investment Banking Entrance Exam

Investment banking is regarded as one of the most glorious, rewarding and challenging fields in the finance sector. Investment banking is a specialised division in the banking industry that helps individuals and corporations raise funds for their ventures. Investment bank helps mediate the deal between the borrowing party seeking funds and the investors who are looking for profitable avenues to park their money. Investment banking encompasses a large range of financial services that also includes providing financial consultancy to clients and advising on profitable investment tools. In addition to this, they also provide services like proprietary trading and trading of securities, facilitating mergers and acquisition deals, debt restructuring, etc. The major role of investment banks is highlighted during the Initial Public Offers (IPOs) by companies going public. How do investment banks make money? The major role played by investment bank includes mediating deals between corporations. The main revenue source for investment banks here is their commission on the deals facilitated between two corporations. Taking an example here for a better understanding, suppose company x is interested in buying company y, company x hires an investment banking firm to conduct a thorough analysis of company y to find out if itll be profitable to buy company y based on current stats and future projections. The investment bank here will conduct a due diligence process on company y to derive a conclusion regarding the value of the company being acquired. If the company x agrees on buying company y, the investment bank will negotiate a deal on company xs behalf and itll earn a commission on that deal. The investment bank will also earn for its due diligence services in addition to the commission.

The starting salary of a Bank PO is somewhere between 30-35k and various other benefits depending upon the bank. The total package goes around Rs. 4-6 lakhs per annum depending upon HRA (House Rent Allowance) for a particular city.
Now, after the seventh pay commission is applied (would be done in coming few years) the salaries are sure to rise somewhere between 30-70%. Also, we can expect an annual increment in salary based on increasing DA (dearness allowance) every year.
Add to it a promotion every 4 years (on an average) and a corresponding increase in your salary and benefits, I would say that any Bank PO employee is "settled".
Though it is a far fetched guess, in 10 year time you can expect a salary of 70-100k per month in hand, with many other benefits.
Please understand that in any job (government or private), it takes around 10 years for you to achieve a level that commands good salary, respect and host of benefits. So if you are preparing for an MBA, only look for colleges that can give you an opportunity to get at least a package of Rs. 12-15 lakhs per annum today. My suggestion would be to choose only from top 15-20 B-Schools.