India's financial dealmaking landscape witnessed a historic surge in 2025, with investment banking fees climbing to a staggering $1.3 billion. This remarkable growth was propelled by an unprecedented boom in initial public offerings (IPOs) and a robust pipeline of mergers and acquisitions, setting a new benchmark for the industry.
Foreign Banks Dominate the 2025 Fee League Table
In a significant shift from the previous year, international financial giants captured the top positions in the 2025 fee rankings. Leading the charge was the American firm Jefferies, which secured the number one spot with earnings of $98.9 million. This marks a dramatic ascent for the bank, which was in fourth place in 2024 with $70 million and a distant 26th in 2021 with just $12 million in fees.
Morgan Stanley followed closely in second place with $85 million, while JP Morgan took third with $81 million. This represents a substantial jump for both banks; Morgan Stanley was seventh in 2024 ($43 million), and JP Morgan was 13th ($32 million). The dominance of foreign banks this year contrasts sharply with 2024, when domestic lenders Kotak Mahindra, ICICI, and Axis Bank led the rankings.
Industry experts attribute this reshuffle to the nature of deals in 2025. "International banks typically focus on large-ticket transactions, and the surge in sizable ECM deals in 2025 drew greater participation from them," the data suggests, allowing them to capture a disproportionate share of the fee pool.
Equity Capital Markets Drive the Fee Surge
Breaking down the $1.3 billion total, data from financial markets platform LSEG reveals that Equity Capital Markets (ECM) generated the largest portion of fees at $656 million. This segment was fueled by the IPO boom and strong block trades. Mergers and acquisitions (M&A) advisory followed with $396 million, while debt capital markets contributed $246 million (excluding loan syndication).
Vikas Khattar, head of ECM at Ambit, noted the evolving market dynamics. "The Indian ECM market has come of age, and in the coming years there will be intense competition between ECM and M&A fees," he said. He added that a strong ECM market boosts confidence for large M&A deals by enabling acquirers to raise capital efficiently.
Samarth Jagnani, head of ECM at Morgan Stanley India, highlighted the scale of activity on LinkedIn, stating that his firm advised on 10 transactions exceeding $1 billion in 2025, reflecting the trend of foreign banks engaging in high-value deals.
Domestic Banks Hold Strong, Teams Expand Amid Momentum
Despite the foreign bank dominance, Indian institutions maintained a strong presence. Kotak Mahindra Bank ranked fourth with $78 million, and Axis Bank secured fifth place with $67 million. Citibank rose notably to sixth position with $61 million, up from 10th in 2024 when it earned $37 million.
Rahul Saraf, head of Investment Banking at Citi India, pointed out that cross-border deal fees, often recorded in foreign countries, might mean LSEG data doesn't fully reflect a bank's total revenue. "Citi is decidedly one of the top banks on revenues," he stated.
With deal momentum remaining strong, banks are aggressively expanding their teams to capitalize on the opportunity. However, bonus cycles differ: foreign bankers' bonuses are linked to the previous calendar year's targets, while local banks follow the April-March financial year.
"We increased the IB team strength by 23% last year and would look to increase by a further 25%, given the strong pipeline we have and the underlying momentum of business," revealed Rahul Saraf of Citi India. This expansion underscores the industry's bullish outlook on India's continuing deal-making potential.
