Pandit returns to banking with India's JM Financial

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.