Vikram Pandit, the ex CEO of Citigroup has just bought 50% stake in a subsidiary of JM Financial and has been named its non-executive chairman. The entity would file for a new banking license and given Pandit’s background, it is expected that their application would be a serious contender when RBI evaluates all such proposals. Pandit would also invest $100 million into the lending and finance business of JM Financial, where too he would be the non-executive chairman.
Moreover, Vikram Pandit and the Indian firm will together invest $100 million in a new distressed asset fund.
Oct 2013: The government approved Vikram’s investment in JM Financial, the entity which has applied for a new banking license. With this the ex-CEO of Citigroup is now a step closer to his dream of launching a new bank in India. The final verdict on who all get the RBI’s nod for the banking licenses is expected by Jan/Feb 2014.