Vikram Pandit, the former chief executive of Citigroup who was ousted after losing a power struggle with the bank's chairman last year, will lead a proposed bank that his long-time friend and ace rainmaker Nimesh Kampani of JM Financial plans to set up, an Economic Times report said.

Global funds raised and managed by Pandit will also invest up to $200 million in the JM Group's various businesses, the Mumbai-based company said in a statement. Pandit, 56, will acquire 50 per cent stake in JM's non-banking financial company (NBFC) and buy 3 per cent stake in the parent company, it said.

Pandit led Citigroup from December 2007, successfully steering the bank through the depths of the 2008 finance crisis before resigning under dramatic circumstances on October 16, 2012, as he had lost the confidence of his board. He was earlier with Morgan Stanley, where he was president and chief operating officer of the investment banking business.

Read the full report here