The Rise of Investment Banking Companies in India Over the Years

Investment banking is a huge sector in today’s India. Some of the major investment banking companies in India we know are Axis Bank, Axis Capital, Central Bank of India, Centrum Capital, Chartered Finance Management Ltd., HDFC Bank ltd. Etc. But where did this journey of Invest banking system start in India? For this, we need to trace back to the time when the European merchant banks had first established houses of trading in the Indian subcontinent in the 19^th century. Since then, when it comes to foreign banks, they are the once to have dominated the investment and merchant activities in the country.

It was only in the 1970s that the State Bank of India (SBI) entered the business. It created the Bureau of Merchant Banking, and ICICI Securities, which made it the first Indian financial institution that offered banking services to merchants. A decade later, in around 1980m the number of merchant banks rose to more than 30. This growth then rapidly expanded to commercial banks and many other financial institutions.

However, you would be surprised to know that the merchant banking industry only took off in the 90’s when around 1500 merchant bankers registered with Securities and Exchange Board of India which we popularly know as SEBI. But a system was going to be required to put this new wave of banks that had opened up in governed space. Therefore, the Association of Investment Bankers of India (AIBI) was created. Its duty was to ensure that the members followed follow the rules and banking regulation and their activities are kept in check.

Today, investment banking has become a big source of finance in the country. It deals with many things, from hedge funds, to guiding clients to invest wisely and risk bearing as well. You could look for the list of the ace investment banks in the country.