Citi Becomes India's Top Investment Banker with $60M Fee Surge

Citigroup has staged a massive comeback in the Indian financial landscape, skyrocketing from 27th place last year to the number one spot in investment banking fees for the first half of 2026. This dramatic shift highlights a significant change in dealmaking dynamics, where large-scale M&A activity is now outpacing traditional capital markets.

Citi’s Meteoric Rise and Market Dominance

According to data from LSEG Deals Intelligence, Citigroup's fees in India surged by a staggering 705% year-on-year, reaching $60.3 million in the first half of 2026. This performance secured the bank a 9.8% wallet share of India's total investment banking fee pool, which stood at $614.1 million.

The primary engine behind Citi’s ascent was 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 India. This represents a 34.7% market share and a massive 1,047% jump in deal value compared to the previous year.

The Shifting Landscape: M&A Rebounds as ECM Cools

While the overall investment banking fee pool shrank by 20% year-on-year, the underlying trends show a stark divergence between advisory work and capital markets issuance.

M&A advisory fees proved resilient, growing 24% year-on-year to $265.0 million. Total M&A deal value in India reached $86.9 billion—its highest first-half total since 2022. This growth was driven by larger, more complex transactions rather than volume, with Q2 alone accounting for $66.9 billion in deal value.

In contrast, the capital markets segments faced significant headwinds:

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

The surge by Citi reshaped the league tables. Ernst & Young PLC secured second place with $43.0 million in fees (up 124%), followed by Axis Bank Ltd in third with $38.1 million. Arpwood Capital emerged as a strong new entrant in fourth place. Notably, last year's leader, Jefferies LLC, slipped to fifth position as its fees dropped 60% to $27.9 million.

Sector-wise, materials led M&A activity with a 28% share, bolstered by major moves like the $20.6 billion Vedanta Aluminium spin-off. While healthcare and financials showed solid activity, high technology saw high volumes but lower overall transaction values.

On the ECM side, despite the slowdown, Jefferies remained the leader in bookrunning with a 15.5% market share, while Axis Bank dominated the DCM segment with a 12.3% market share.

Key Takeaways

  • Citi’s Dominance: Citigroup jumped from 27th to 1st place in India's investment banking league table, driven by a 705% increase in fees.
  • M&A vs. Capital Markets: M&A activity is driving growth with an 86.9 billion deal value, while ECM and DCM segments are experiencing significant contractions.
  • Quality Over Quantity: The Indian market is shifting toward fewer but much larger transactions, particularly in the materials and healthcare sectors.