[willsurelywin]

Originally Posted by Đ i g i S y n c

Very true. But no more some kind of an internal news mate. A guy I know was a fund manager based in Japan. He told me the same thing some 6 months back. Could be a short period or few years. No one really comments on how long these financial crisis will last. In 1997 financial crises, took around 6 years to recover. George Soros said that this time the crisis look even worse. :(

Thanks for the reply

citibank has said that housing prices will fall 30% over next 2 years in USA.
its also said most of the banks in us r technincally bankrupt its just when it will be declared

maybe from 2009 we may start hearing news of bank failures ........

this is not a crisis its a financial depression just like 1929 economi depression:2gunfire:

[D i g i S y n c]

Originally Posted by krishsuraj

And IIM grads who get hired for foreign IBs get hired for the same job as a MBA grad from US B-Schools except that they join as a 2nd or 3rd analyst, though some have even joined as Associates this year, which is the entry level for US MBA grads. Since Indians tend to do MBA without work-ex, these guys dont stand to lose much in terms of years of work ex...

I'm not from IIM or any other b-school yet and you guys know much better Do you think that IIM or any other Indian B School guys with no relevant work experience should join as senior analysts only? I personally feel that joining as an associate 'might' hurt their promotion, bonus and over all impression on their seniors. Usually an analyst will get promoted to an associate level after some 2.5-3 years of joining as an analyst. There are some cases where they get promoted or picked by some other firm in 1 year. But before they get promoted his seniors consider his track record, capabilities, and over all impression in the firm. If he is from the IB sector working in some M&A teams they would consider the successful transactions he worked out. If he is from say the sales and trading sector then they will surely consider his Profit and Loss (P&L). Comming to the point, any fresher analyst who worked for some 2-3 years will surely have a lot of idea about the work culture and all the businesses of the firm he is associated with. But a fresher MBA who joins as an associate might struggle managing a team of associates under him? I'm not sure as the firm may provide the fresher MBA associates with some training sessions?

Two years back Lehman Brothers NY offered an MBA from IIM-A some 1crore + package. She accepted. She did her Computer Engineering from PICT - Pune and was a gold medalist from IIM-A. Must have worked hard and reached there. I try to imagine what she must be doing these days.


Thanks for the reply mate

[D i g i S y n c]

Originally Posted by willsurelywin

citibank has said that housing prices will fall 30% over next 2 years in USA.
its also said most of the banks in us r technincally bankrupt its just when it will be declared

maybe from 2009 we may start hearing news of bank failures ........

this is not a crisis its a financial depression just like 1929 economi depression:2gunfire:

Yep. Even from the late 2006 till 2007-08 US is facing sum-prime crisis.

In Pune most of the construction businesses are under great pressure. They all have invested a lot in their new schemes. But these days people are not really spending on buying a new house.

I met a branch manager of a state bank and he said that they are rejecting many loans. Most of these are couples, both working in the IT sector. They start with a good package. They dare to book a new house but something goes wrong between the couple (job sacrifice, divorce and many other reasons). He said that this is a very common case now.

On the other hand private banks are worried because no one wants to take a loan!!! Maybe that is why many people keep getting calls, again and again from ICIC, Barclays and few others offering loans. There are many huge township projects and I think that they will be affected the most. Obviously private banks are very aggressive when it comes to marketing and taking quick decisions.

Me comming back to IBanking, I hope that by 2009 we hear that everything is back to normal!

[krishsuraj]

Originally Posted by Đ i g i S y n c

I'm not from IIM or any other b-school yet and you guys know much better Do you think that IIM or any other Indian B School guys with no relevant work experience should join as senior analysts only? I personally feel that joining as an associate 'might' hurt their promotion, bonus and over all impression on their seniors. Usually an analyst will get promoted to an associate level after some 2.5-3 years of joining as an analyst. There are some cases where they get promoted or picked by some other firm in 1 year. But before they get promoted his seniors consider his track record, capabilities, and over all impression in the firm. If he is from the IB sector working in some M&A teams they would consider the successful transactions he worked out. If he is from say the sales and trading sector then they will surely consider his Profit and Loss (P&L). Comming to the point, any fresher analyst who worked for some 2-3 years will surely have a lot of idea about the work culture and all the businesses of the firm he is associated with. But a fresher MBA who joins as an associate might struggle managing a team of associates under him? I'm not sure as the firm may provide the fresher MBA associates with some training sessions?

Two years back Lehman Brothers NY offered an MBA from IIM-A some 1crore + package. She accepted. She did her Computer Engineering from PICT - Pune and was a gold medalist from IIM-A. Must have worked hard and reached there. I try to imagine what she must be doing these days.


Thanks for the reply mate

Anyway associate offers for freshers is extremely difficult to get. And most of the analysts in US IBs would be undergrads, so managing them if u have some sort of work ex wouldnt be difficult. The Associate is normally given adequate training and basically fast tracked into Investment Banking.
And regarding the 1 crore offer 2 years back, u never know he/she might be back in India after the sub prime!!!!

[D i g i S y n c]

Originally Posted by krishsuraj

Anyway associate offers for freshers is extremely difficult to get. And most of the analysts in US IBs would be undergrads, so managing them if u have some sort of work ex wouldnt be difficult. The Associate is normally given adequate training and basically fast tracked into Investment Banking.
And regarding the 1 crore offer 2 years back, u never know he/she might be back in India after the sub prime!!!!

Sub-prime had more do to with private/retail banking? IBanking is totally different and the year 2006-2007 proved to be extremely rewarding for major IBanks. Else, how could they afford 100% bonuses? Thus, I feel that the girl is still safe Why would they want to get ride of a gem?

[willsurelywin]

@digi i think u dont much abput subprime then

i banks have huge mortgage loans and subprime they r the worst sufferes due to crashing housing prices

infat lehman share shave fallen 80% peak and there is rumours eventually it will go bankrupt

its just that fed is saving banks/i banks for now but when in another 6 months fed runs outa cash thse i banks will be dead ducks

als i guess u dont know next 18 months almost 2 lac jobs in us/uk banking industry will be cut

[BaBu]

The "whopping" 13L CTC salary being given by Lehman is not for the same job as being given for under grads in the US. Its in the KPO arm of Lehman brothers. So the situation is still the same in India. A geography grad would still find it extremely difficult to get into a top notch IB in India...

And IIM grads who get hired for foreign IBs get hired for the same job as a MBA grad from US B-Schools except that they join as a 2nd or 3rd analyst, though some have even joined as Associates this year, which is the entry level for US MBA grads. Since Indians tend to do MBA without work-ex, these guys dont stand to lose much in terms of years of work ex...

And regarding why IBs prefer IIT/IIM grads, I would go with anandv 's reasoning, ease of selection!!!!!

P.S:- IBs are one place where HRs are treated with scant respect and dont play any significant part in hiring unlike in IT companies where they r revered

As per my information, the Lehman offer of 14 lakhs p.a is for 'domestic investment banking'. They are all working as 'analyst in capital market division'.

I know a SRCC guy who has been placed in lehman (he was head of SRCC placements- Batch 200 8 and he has joined lehman in mumbai from june 7, 2008.

Paying 14 lakhs p.a for a KPO profile to an analyst defeats the purpose of offshore outsourcing due to inflated cost structure. The new college kids will be revenue generator for Lehman India working in ECM business.

Out of 14 lakhs p.a,10 lakhs p.a is a fixed component and 4 lakhs p.a is a variable component.

Lehman has followed a 'global hiring policy'. They went to best undergraduate colleges and picked up the cream for first year analyst positions just like do they do in US going to harvard/wharton etc.

With due respect to DU B.com hons, i am amazed why lehman hired a b.com graduate from SRCC at 14 lakhs p.a.

I have done b.com hons from delhi university based college (paper is same for all colleges under DU) and a B.com hons student from DU does not even have a knowledge about security market line/capital market line/concepts like beta.

What worked in favour of students was the brand- SRCC, St Stepehens, Xavier etc.

Lehman will train all these fresh college kids professional in valuation techniques and i am sure given the sort of package they have got, they are not going to leave lehman soon since no one will offer such kind of packages without a MBA.

For reference, here is the article:

Investment banks target college grads with top dollar- Jobs-News By Industry-News-The Economic Times

[D i g i S y n c]

Originally Posted by BaBu

With due respect to DU B.com hons, i am amazed why lehman hired a b.com graduate from SRCC at 14 lakhs p.a.

I have done b.com hons from delhi university based college (paper is same for all colleges under DU) and a B.com hons student from DU does not even have a knowledge about security market line/capital market line/concepts like beta.

What worked in favour of students was the brand- SRCC, St Stepehens, Xavier etc.

What you said is totally right. B. Com really does not teach you about the work done at IB's. Same with engineering but with this course the student gets properly grilled. Improves a lot analytically. After that understanding financial concepts is not a big deal.

Brand matters a lot. No wonder there are doctors from Oxford and Cambridge working in various divisions of all top banks. Keeping top university/b-school student also a lot about 'prestige'. Same goes for students doing English, Drama, History, Physics and few other subjects. Banks abroad want students who have a spark in them. Students who are really interested in IBanking.

Anshu Jain was from Sri Ram College of Commerce. Amazing personality. Check about him using this link Anshu Jain - Wikipedia, the free encyclopedia

Cheers!!!

[krishsuraj]

@Babu

Normally even from IITs, bulk of the ppl are hired for back-end and 1-2 for front end. It just might be the case that they have done that in SRCC too. But I'm sure bulk of the hired ppl r in KPO only as Lehman's Investment Banking team size is extremely small in India.
Coming to salaries, a newly hired MBA grad in Lehman front office gets about 8000-10000 USD per month working in Mumbai apart from the bonuses, which can shoot your net to anywhere around 1.5 crores. I personally know a guy who got this much money in Lehman about a year back when the going was good. So a net pay of 14L including bonuses for an analyst is still cost savings for Lehman

[anandv]

Originally Posted by krishsuraj

@Babu

Normally even from IITs, bulk of the ppl are hired for back-end and 1-2 for front end. It just might be the case that they have done that in SRCC too. But I'm sure bulk of the hired ppl r in KPO only as Lehman's Investment Banking team size is extremely small in India.
Coming to salaries, a newly hired MBA grad in Lehman front office gets about 8000-10000 USD per month working in Mumbai apart from the bonuses, which can shoot your net to anywhere around 1.5 crores. I personally know a guy who got this much money in Lehman about a year back when the going was good. So a net pay of 14L including bonuses for an analyst is still cost savings for Lehman

Totally agree! That's the exact underlying behind offshoring.

Now that people are all out after KPOs, lemme add something There are 2 types of KPOs : Captive KPOs and 3rd party ones.

The captive KPOs are like Lehman, Goldman etc etc. The employees in these KPOs work solely for their banks.

The 3rd party KPOs are like: Adeventity, EVS. The employees in these KPOs work for other banks.
e.g. Credit Suisse might approach Advenitity for their research in S Asia and Adventity will help CS with reports and all.

And now that digisync has talked about diversity of profiles, let me give a personal example. I work for a bulge-bracket IB's KPO albeit in equity markets. My manager is an IAS and his manager is doctorate in cognitive psychology.