Centre lures candidates for DFI's top job with hefty pay package

After failing to get adequate response to head its Development Finance Institution (DFI), the Centre has sought more applications for the top job of the National Bank for Financing Infrastructure and Development (NaBFID) by luring applicants with hefty pay package and relaxing the eligibility criteria.

Extending the last date for applying for the post of managing director (MD) of NaBFID, the Banks Board Bureau (BBB) — headhunter for filing top-level posts at public sector financial institutions — has notified that the total compensation — total of fixed pay and performance bonus — will not exceed Rs 3.36 crore per annum.

Although the BBB had earlier stated that the salary and allowances payable to the MD shall be driven by market standards, suggesting a benchmark for the top job pay is likely to be seen as an attractive proposition, said experts.

In the revised application, the criteria for the experience of candidates at the board-level position has been revised to at least two years, from the earlier three, as current or prior in an institution with a balance sheet of over Rs 3 trillion as on March 31, 2021. However, the incumbency of the board-level position should not be older than three years prior to January 31, 2022. The candidates must have 25 years of experience as on January 31, 2022, in banking or financial lending business, such as banks, financial institutions or non-banking financial companies.

Retaining the age limit at 50-60 years as on January 31, 2022, the minimum educational qualification has been changed to graduate or equivalent or professional qualification of a chartered accountant, masters of business administration or equivalent. The earlier minimum educational qualification was mandated to be postgraduate or equivalent.

The changes have been made to allow more candidates to apply for the top job at the government-backed DFI that seeks to fill existing gaps in long-term infrastructure financing and enhance lending in infrastructure.

The DFI is preparing to commence its operation in the first quarter of the next fiscal year. In October 2021, the Centre had appointed K V Kamath as chairperson of the government-owned DFI. Subsequently, government nominees Pankaj Jain and Sumita Dawra were appointed directors to the board of DFI.

Last month, the government infused Rs 20,000 crore into NaBFID to help the DFI start its operations to catalyse investment in the infrastructure sector.

The DFI will lend or invest in infrastructure projects located in India and outside the country, prioritising systemic risk mitigation, credit enhancement, subordinate debt, debt maturities suited to project lifespans, and raise long-term finance for the same.

NaBFID will get government guarantees at a concessional rate of up to 0.1 per cent for borrowing from multilateral institutions, sovereign wealth funds, and other such foreign institutions.