Shares in India's JM Financial soar on Pandit stake buy

Shares in India's JM Financial Ltd jumped nearly 17 percent Friday after the group said former Citigroup chief executive Vikram Pandit was buying a stake in the financial services company.

After reaching the day's high in morning trade, JM Financial's shares closed up 13.38 percent at 26.70 rupees.

The group announced Pandit's strategic investment late Thursday and said he would also become the non-executive chairman of a proposed bank if its licence is approved.

The firm is one of numerous Indian companies that are applying for several banking licenses being offered by the country's central bank.

"I continue to believe in the long term growth prospects of India," said Pandit in the release on JM Financial's website.

He added his belief that the company "can provide the banking and financial services that the country needs".

Pandit resigned from Citigroup in October after nearly five years heading the US banking giant.