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Looking forward to serve BRICS nations: Kamath

Seasoned banker K V Kamath thanked the Modi government for appointing him as the first president of New Development Bank (NDB) and said he would look forward to serving BRICS nations.

“I look forward to the establishment of the bank and commencement of its operations in the service of the BRICS nations,” he said in a statement.

Earlier this week, the government had announced appointment of Kamath as the first president of the USD 100-billion BRICS Bank named NDB.

“I am honoured and humbled that the government of India has nominated me as the first president of the New Development Bank for the BRICS nations. I would like to thank the government for reposing confidence in me,” he said.

Kamath, 67, non-executive Chairman of the India’s largest private sector ICICI Bank, will have a five-year term at the institution, which is likely to be operationalised within one year.

Leaders of the emerging economies of Brazil, Russia, India, China and South Africa (BRICS) had last year reached an agreement to establish the New Development Bank, with its headquarters in Shanghai. As per the agreement, India got the right to nominate the first president.

The BRICS nations account for nearly USD 16 trillion in GDP and 40 per cent of the world’s population.

Kamath will take over as the first president of the bank in next 10 days after he resigns from various board positions he holds, Finance Secretary Rajiv Mehrishi had said.

The bank will start with initial capital of USD 50 billion with each BRICS country contributing USD 10 billion, while its authorised capital is USD 100 billion.

The bank requires ratification by all the five countries of the grouping of emerging market nations.

India is hoping to get more funds for infrastructure development from the bank.

Equal capital contribution has been decided so that the development bank does not fall into the ownership pattern of IMF and the World Bank with a distorted shareholding.

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