Pandit returns to banking with India's JM Financial

May 16, 2013, 4:31 PM EDT
CEO of Citigroup Vikram Pandit speaks during the FORTUNE Breakfast & Conversation with Vikram Pandit, CEO, Citigroup at TIME Building on October 12, 2011 in New York City.
Jemal Countess

Former Citigroup chief executive Vikram Pandit is returning to banking by taking a stake in JM Financial, an Indian financial services group that is launching a $100 million fund to invest in distressed assets. Pandit, who was ousted from Citigroup last year, is taking a 3% stake in the company along with another Indian executive and longstanding colleague, Hari Aiyar. He will also become non-executive chairman of a new bank JM Financial is hoping to start if it wins one of the new banking licenses being issued by the Reserve Bank of India. Shares in JM Financial rose by 16% in Mumbai trading.