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Citigroup, the world's largest bank, yesterday promoted Vikram Pandit, a former Morgan Stanley investment banker who joined just eight months ago, to be its new chief executive following the departure of Chuck Prince last month under the weight of multi-billion losses on sub-prime mortgage investments. Sir Win Bischoff, who has been acting as chief executive since Mr Prince's departure, will succeed Robert Rubin, the acting chairman, who will return to his previous role on the board. The appointment represents a meterioc rise for Mr Pandit, who is 50 and was born in India. He was one of several senior executives to leave Morgan Stanley early in 2005 following a disagreement over strategy with Philip Purcell, the chief executive at the time. Mr Pandit joined his present employer in May when Citigroup bought Old Lane, the hedge fund he set up after leaving Morgan Stanley, for $800 million. Initially, Mr Pandit headed Citigroup's alternative investment group but within a few months he saw his responsibilities broaden to include the much bigger investment bank as well. Mr Prince resigned last month after massive declines in the value of sub-prime mortgage related investments contributed to a $6.4 billion third-quarter writedown - $500 million more than the bank predicted just a few days earlier - and Citigroup conceded it could need to take a further $11 billion hit this quarter.