Citi Emerges as India’s Top Investment Banker with $60 Million in Fees

Citigroup has staged a massive comeback in the Indian financial landscape, skyrocketing from 27th place to the number one spot in the investment banking fee league tables for the first half of 2026. This dramatic ascent was fueled by a staggering 705% year-on-year surge in fees, signaling a major shift in the dominance of global versus domestic players.

Citi’s Meteoric Rise and M&A Dominance

According to data from LSEG Deals Intelligence, Citigroup earned $60.3 million in fees during the first half of 2026, capturing a 9.8% wallet share of India's total investment banking fee pool. While the overall fee pool in the country contracted by 20% to $614.1 million, Citi’s performance was an outlier driven primarily by its overwhelming dominance in Mergers and Acquisitions (M&A).

The bank topped the M&A financial advisory rankings, advising on $30.2 billion worth of announced deals involving Indian entities. This represents a 34.7% market share and a massive 1,047% jump in deal value compared to the previous year, achieved across just eight major transactions.

Competitive Landscape: Winners and Losers

The shift in rankings saw several major players recalibrate their positions. Ernst & Young PLC secured the second spot with $43.0 million in fees (up 124% YoY), followed by Axis Bank Ltd in third place with $38.1 million (up 16%). Notably, Arpwood Capital emerged as a new heavyweight, taking fourth place with $33.7 million.

In contrast, last year's leader, Jefferies LLC, experienced a significant downturn, slipping to fifth place as its fees plummeted 60% to $27.9 million.

A Tale of Two Markets: M&A Rebounds While Capital Markets Cool

The first half of 2026 revealed a stark divergence between deal advisory and capital markets. While completed M&A advisory fees grew by 24% to $265.0 million, other segments faced significant headwinds:

  • Equity Capital Markets (ECM): Underwriting fees fell 34% to $188.6 million, with total proceeds dropping 38% to a three-year low of $16.5 billion.
  • Debt Capital Markets (DCM): Underwriting fees dropped 49% to $84.2 million, as bond proceeds hit a four-year low.
  • Syndicated Lending: Fees declined by 26% to $76.3 million.

Despite the slowdown in equity issuance, M&A activity showed resilience. Total India-involved M&A value rose 31% year-on-year to $86.9 billion. This was driven by larger, high-value transactions rather than volume, with the materials sector leading at 28% of total value, bolstered by deals like the $20.6 billion Vedanta Aluminium spin-off.

Outbound Expansion and Future Outlook

A significant trend noted in the data is the surge in outbound M&A, which more than tripled to $18.7 billion—its highest level since 2010. The United States remains the primary destination for Indian acquirers, capturing 73.9% of outbound activity.

While capital markets have been selective, the stage is set for a potentially stronger second half of 2026, with highly anticipated marquee IPOs like Jio Platforms and NSE expected to provide much-needed momentum to the ECM segment.

Key Takeaways

  • Citi's Dominance: Citigroup moved from 27th to 1st in India's investment banking rankings, earning $60.3 million through a massive 705% YoY fee increase.
  • M&A vs. Capital Markets: M&A activity is thriving with a 31% increase in deal value, whereas ECM and DCM sectors are facing significant contractions.
  • Strategic Shifts: Indian dealmaking is moving toward larger, large-scale restructurings and aggressive outbound expansion into developed markets, particularly the US.