Vikram Pandit, the former CEO of Citigroup Inc is purchasing a share in JM Financial of India. He will also be taking on a leadership role as he prepared to set up a bank for the Mumbai based firm.
Pandit is one of the few investors that would share the 3% stake in JM Financial. This was confirmed through documents filed with stock regulatory authorities. The firm would also be applying for a baning license, which will be overseen by Pandit as a non-executive chairman.
Pandit would also be helping JM Financial establish a fund to purchase distressed assets as well as grow the lending and financing business of the firm.
According to statement from Pandit, "I continue to believe in the long term growth prospects of India. JM Financial can provide the banking and financial services the country needs."
Share values of JM Financial jumped 16% in the latest trading day in Mumbai as well as increasing by 9.7% the day before. Prior to May 11, share prices had declined by as much as 16% this year.
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