Ex-Citi boss Vikram Pandit to lead JM Fin banking foray

Nimesh Kampani-promoted JM Financial Thursday sought to strengthen its case for a banking license by roping in former Citigroup CEO Vikram Pandit.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Business

May 17, 2013, 03.46 PM | Source: Moneycontrol.com

Ex-Citi boss Vikram Pandit to lead JM Fin banking foray

Nimesh Kampani-promoted JM Financial Thursday sought to strengthen its case for a banking license by roping in former Citigroup CEO Vikram Pandit.

Like this story, share it with millions of investors on M3

Ex-Citi boss Vikram Pandit to lead JM Fin banking foray

Nimesh Kampani-promoted JM Financial Thursday sought to strengthen its case for a banking license by roping in former Citigroup CEO Vikram Pandit.

Post Your Comments

Share Cancel

Moneycontrol Bureau

Nimesh Kampani-promoted JM Financial Thursday sought to strengthen its case for a banking license by roping in former Citigroup CEO Vikram Pandit.

At its board meeting on Thursday, JM Financial approved a proposal to apply for a banking license as per the Reserve Bank of India’s guidelines. Pandit will be nominated as non-executive chairman for the proposed bank, the JM Financial release said.

Don't miss: 'Major work' done in shedding assets, says Citigroup Chairman

Pandit, and his business partner Hari Aiyar will each buy 1.5 percent stake in JM Financial through warrants, the Mumbai-based financial services group said in a statement.

The warrants issued to Pandit and Aiyar will be priced at Rs 19.05 apiece, reports CNBC-TV18's Sajeet Manghat, quoting sources. These warrants can be converted anytime in the next 18 months.

Will JM Financial manage to get a bank licence?

Sources and several banking sectors experts believe that it will be a tough challenge for JM Financial to get a banking licence as the June deadline looms. Despite the fact that Vikram Pandit or Hari Aiyar being roped in and investing in the banking entity, it is still a very weak application, experts believe. 

“Unless Vikram is heading or is at least the one who is promoting the banking entity it would be a very difficult task for the RBI to grant a licence to a broking or investment banking entity,” sources said.
 
Although the RBI has relaxed norms to allow any entity to apply for a licence, but ultimately how many entities will be given a licence and on what basis is yet to be known. Broking entities like India Infoline are also looking for a banking licence. It is going to be a big challenge to distinguish between those who are most eligible and those who are not, in receiving the the license, going forward.

With such a heavyweight such as Pandit on its side, it's now up to JM Financial to decide the manner in which it will approach RBI and present its case for a banking licence.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Ex-Citi boss Vikram Pandit to lead JM Fin banking foray

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login