The nature of the talk was such that it was directly related to a lot of things that the students of XIMB learn in their classrooms.
Prior to joining JP Morgan, Mr Bhave worked for the Mckinsey Knowledge Center. He also worked with Divisional Securities for three years, as a research analyst. Mr. Bhave did his PGDBM from the KJ Somaiya Institute of Management Studies and Research, before which he did his B.Com. from the SIES College of Arts and Sciences, Mumbai.
During the course of his talk, Mr. Bhave started off by breaking the ice and encouraging questions at every stage. The talk was well structured, as it began with the ABCs of Investment Banking and went right up to detailed topics like Valuations. He put forward lots of valuable tips and perspectives, including the fact that Investment Banking is 20 pc theory and 80 pc perspective. Contrary to the popular perception among students, he pointed out that Investment Banking is not all about glamour and money, and initially requires a lot of hard work. Deals are struck only at the VP and MD levels.
Mr Bhave gave the students a clear picture of what Investment Banking involves, right from the identification of needs to the delivery of proper solutions. Throughout the entire process, he emphasized on the importance of understanding the business environment, the sector dynamics, and the nature of the client’s business. Building of relationships and the execution of plans are the two key factors that make up the delivery process. Overall, knowledge of both local and global factors is essential.
“The ultimate objective of the Investment Banker is to get the same client to come back to him as a repeat customer. For this to happen, all the functions must be performed perfectly by the banker. These functions include raising and placing of capital, advising on strategy and capital structure, offering risk management services, and making markets in financial instruments,” he said.
The question of whether investment banking is an art or a science was dealt with by Mr. Bhave in a very practical and understandable manner, where he mentioned that at the point where Markets, Industry, and the Company converge, ie on the shop floor, is where a certain amount of insight must be developed in order to carry out one’s duty effectively. He then went on to explain some of the important transactions that may occur, like Mergers and Acquisitions.
For the students of XIMB, it was a rare opportunity to get an inside view of what is a dream job for many. This was clearly evident from the number of questions that were generated by the students after the talk.