Citi Shares Jump 2% After Pandit Exit


NEW YORK – Shares of Citigroup on Tuesday climbed nearly two per cent in early trade after the global banking giant announced the exit of its India-born chief Vikram Pandit. In the first-hour of trading on the New York Stock Exchange, the scrip jumped 1.96% to USD 37.39 apiece. It opened at USD 36.41 apiece.

The company’s market value touched USD 108.15 billion at the price of USD 37.39 per share.

After being at the helm of Citigroup for nearly five years and steering the banking behemoth through the ravaging financial crisis, Pandit stepped down from his post of CEO on Tuesday.

55-year-old Pandit, steering Citigroup since December 2007, also resigned as a member of its board.

The development came as a surprise since the entity posted a better-than-expected third quarter profit of USD 468 million yesterday, analysts said.

Citi had said excluding the loss on its brokerage unit, a one-time accounting charge and credit adjustments, the bank reported earnings of US 3.27 billion in the quarter under review up from USD 2.57 billion in the period a year earlier.