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India has nominated K V Kamath, non-executive chairman of ICICI Bank and Infosys, as the president-designate of the $100-billion New Development Bank, or the BRICS (Brazil, Russia, India, China and South Africa) Bank, as it is commonly known. The bank is to be headquartered in Shanghai.
On Monday, Finance Secretary Rajiv Mehrishi said Kamath’s tenure as head of the proposed bank for infrastructure financing in the BRICS countries was likely to be for five years. “The appointment will be effective when he becomes free from his current assignments. I think he is on some (company) boards. It might take a couple of days. There is no final decision on the tenure. But it is likely to be five years,” Mehrishi told reporters.
Before he takes up his new role, Kamath has to step down from the boards of ICICI Bank, Infosys, Schlumberger and Lupin. His term as non-executive chairman of ICICI Bank was scheduled to end in April 2017.
On Monday, Finance Secretary Rajiv Mehrishi said Kamath’s tenure as head of the proposed bank for infrastructure financing in the BRICS countries was likely to be for five years. “The appointment will be effective when he becomes free from his current assignments. I think he is on some (company) boards. It might take a couple of days. There is no final decision on the tenure. But it is likely to be five years,” Mehrishi told reporters.
Before he takes up his new role, Kamath has to step down from the boards of ICICI Bank, Infosys, Schlumberger and Lupin. His term as non-executive chairman of ICICI Bank was scheduled to end in April 2017.
At Infosys, where he is chairman, the appointment was valid till December 2017, when he attains the age of 70.
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Finance ministry officials clarified Kamath hadn’t been appointed president of the BRICS Bank yet, adding his name had been proposed by Mehrishi to counterparts in other BRICS countries. The bank’s board of directors will ratify Kamath’s appointment to the post.
“We got a ratification (for BRICS Bank) from the President of India. The country which is last to ratify BRICS Bank would be Brazil. Starting the operations will depend upon Kamath and member countries; it should take a year,” Mehrishi said..
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“We got a ratification (for BRICS Bank) from the President of India. The country which is last to ratify BRICS Bank would be Brazil. Starting the operations will depend upon Kamath and member countries; it should take a year,” Mehrishi said..
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Sources said Kamath’s name was finalised by Prime Minister Narendra Modi, in consultation with Finance Minister Arun Jaitley. A number of high-profile candidates from the corporate sector, as well as many bureaucrats, were considered for the post.
Sources said Kamath’s name was finalised by Prime Minister Narendra Modi, in consultation with Finance Minister Arun Jaitley. A number of high-profile candidates from the corporate sector, as well as many bureaucrats, were considered for the post.
It is said those considered for the post included State Bank of India Chairman Arundhati Bhattacharya, ICICI Bank chief executive Chanda Kochhar, Reserve Bank of India Governor Raghuram Rajan, Securities and Exchange Board of India Chairman U K Sinha, and Competition Commission of India Chairman Ashok Chawla.
Last year, leaders of the BRICS countries had reached an agreement to establish the New Development Bank to fund infrastructure projects undertaken by these nations.
This was seen as a counter to the International Monetary Fund and the World Bank, whose shareholding pattern is seen as favouring Europe and North America.
Together, BRICS countries account for about $16 trillion in gross domestic product and 40 per cent of the world’s population. The BRICS Bank will start with initial paid-in capital of $50 billion, with each BRICS country contributing $10 billion. Its authorised capital is $100 billion.
India’s holding of the bank’s presidency will be followed by Brazil and Russia, under an agreement reached after intense negotiations among the member countries.
