Investment bankers may ride hiring wave

Private lenders and financial services firms on the lookout for talent as most foreign companies trim headcount

Investment bankers have finally something to cheer about. At a time when most foreign banks and financial services firms are reducing their headcount, domestic financial institutions have chalked out aggressive expansion strategy and are expanding their investment banking teams with new recruits.

HDFC, India's second largest private sector lender, plans to hire 10 investment bankers over the next few months, to strengthen its presence in equity capital markets and advisory space.

In 2011, the bank had roped in Rakesh Singh from Rothschild to lead its investment banking business. Singh, former managing director and co-head of financing advisory at Rothschild, was given the responsibility to build loan syndication, project financing, corporate finance and advisory, debt and equity capital market businesses.

"We are looking to build experience in certain industries like retail, healthcare, industrial, infrastructure and financial services. Over the next three to six months, you will see us hiring bankers for specific industries. Currently, we have 15 bankers in the investment banking team. We aim to grow it to 20-25 by the end of this calendar year," Singh told Business Standard.

HDFC Bank has appointed Donald D'Souza, former head of investment banking at IIFL, as the head of its equity capital markets business. According to sources, veteran banker Nishikant Das is also set to join the lender from Standard Chartered Bank.

Earlier this month, IIFL said it has appointed Nipun Goel as the president of the firm's investment banking division. Goel earlier led the investment banking operations of Japanese financial services firm Nomura in India.

Bankers and headhunters said other financial institutions like Avendus Capital, Anand Rathi Financial Services and Axis Bank are also planning to expand their investment banking teams.

"The talent pool, which otherwise would not have preferred to join these institutions, are now taking up roles with domestic firms as many of them lost their jobs with multinational corporations," said a top official of a Mumbai-based human resource consultancy firm, requesting anonymity.

Global financial services firms, including Nomura, Citibank, Hongkong and Shanghai Banking Corporation, Credit Suisse, Barclays Bank and Morgan Stanley have cut jobs in India in the past one year due to slow growth in businesses.

"There is now a good talent pool available from global investment banks. Domestic banks and financial services firms are looking to exploit this opportunity. We expect this trend to continue in the coming months," said Ajit Premkumar, consultant with EAL Consulting India.

Industry experts said this has provided banks and financial services firms with an opportunity to hire senior bankers at relatively lower costs.

They said banks are also being selective while hiring because of the availability of a large number of people.

"The flow of talent is there. But there are not enough transactions on their CVs because of the slowdown in business activities in last one year. That is not giving us a comfort while hiring," said a senior official with a private sector bank.