Investment banks are starting to rehire graduates, with some offering starting packages worth £50,000, according to a report in The Times today.

A study by High Fliers Research shows that the industry is expected to recruit up to 5,000 graduates, with applications for graduate jobs at investment banks increasing 16% this year.

Between 2007 and 2009 graduate vacancies at investment banks fell by half to around 2,500. Most banks will be hiring between 200 and 300 graduates each, according to the report.

Martin Birchall, managing director of High Fliers Research, said: “Most banks are recruiting as if nothing ever happened. There are also rumours that some of the big-name banks will be offering graduates starting packages worth £50k.”

Andrew Adams, manager of banking operations at City financial recruiter Goodman Masson, told Recruiter: “There is certainly a disparity in salaries. Some of the investment banks [fearing the public backlash from the bonus culture] won’t be giving bonuses but will increase their compensation packages instead, and this will in turn affect on-boarding salaries.

“There is a major increase in graduate positions this year and many positive signs in the sector.”