**Record Bonuses for Indian Investment Banks Amid Surge in Deal Activity**
Indian investment banks have awarded unprecedented bonuses this year, driven by a significant increase in deal activity that propelled fees to record levels in the last fiscal year, according to insights from headhunters and industry insiders. Major firms such as Kotak Mahindra Capital Co., Axis Capital, Avendus Capital, and JM Financial have reportedly distributed million-dollar bonuses (₹8-9 crore) to their top executives, as revealed by sources who requested anonymity due to the confidential nature of compensation data.
The headhunter noted, “The leading domestic banks have achieved record revenue levels in the past financial year, and the bonuses announced in June have been remarkable, with top executives earning approximately 250-300% of their annual compensation in bonuses.” The previous fiscal year was particularly active for investment bankers, with notable companies like Hyundai Motors India Ltd, Swiggy Ltd, Ola Electric Ltd, and Firstcry (operated by Brainbees Solutions Ltd) going public. Additionally, private equity investors exited or partially sold their stakes in various Indian firms, while consolidation in the industrial, consumer, and financial services sectors fueled a wave of mergers and acquisitions (M&As).
Harpuneet Singh, managing director at executive search firm Russell Reynolds, commented, “This has been one of the best years for local bankers, especially as global hikes and bonuses for investment bankers have not met their usual standards due to softness in their local markets. However, as market conditions cool, maintaining this momentum may prove challenging.”
In FY25, both large and small investment banks collectively generated over $1.35 billion (₹10,900 crore) in fee income through transactions in equity and debt markets, as well as M&As, according to data from the London Stock Exchange Group. This marks an increase from the $1.25 billion in fees generated in FY24 and $1.07 billion in FY23.
Despite inquiries sent to representatives of Axis Capital, Avendus Capital, Kotak Mahindra Capital Co., and JM Financial, no responses were received. The top investment banks in the FY25 fee league tables include Jefferies, Axis Bank, State Bank of India, ICICI Bank, Kotak Mahindra Capital, JM Financial, Morgan Stanley, and Avendus Capital.
In FY25, over 80 mainboard IPOs raised a total of ₹1.63 trillion, a significant increase compared to ₹61,900 crore across 76 offers in FY24, as reported by KPMG’s analysis released in May 2025. Monica Agrawal, managing director at Korn Ferry in India, stated, “The Indian markets have been exceptionally vibrant in recent years, allowing local investment banks to capitalize on these opportunities. They have successfully attracted top talent and are currently offering higher compensation.”
As the investment banking landscape evolves, the future will depend on market conditions and the ability of these firms to sustain their growth and compensation levels.
**FAQ**
**What factors contributed to the record bonuses for Indian investment banks this year?**
The record bonuses were primarily driven by a surge in deal activity, leading to all-time high fee income from various transactions, including IPOs and mergers and acquisitions.