Eminent banker K V Kamath was today appointed as head of the $50-billion New Development Bank being set up by the five emerging economies of the BRICS grouping.
- Kamath will have a five-year term of the bank.
- Kamath has been named the first president of the NDB.
- NDB is likely to be operationalised within one year.
About Kamath :
- Kamath is the Chairman of the India’s largest private sector bank ICICI.
- After serving at ICICI for more than a decade, Kamath had moved to Asian Development Bank, Manila, in the private sector department in 1988.
- His principal work experience at ADB was in various projects in China, India, Indonesia, Bangladesh and other emerging nations.
- He has served as the chairman of Infosys Limited, the second-largest Indian IT services company.
- He is also a member of the Board of Governors of the Pandit Deendayal Petroleum University.
- He was awarded Padma Bhushan Award from the Indian government – 2008
Other Awards :
Businessman of the Year – Business India, 2005.
Business Leader Award of the Year – The Economic Times, 2007.
Businessman of the Year – Forbes Asia,2008.
Information about New Development Bank :
- Multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing US-dominated World Bank and International Monetary Fund.
- Leaders of the emerging economies of BRICS had last year reached an agreement to establish the New Development Bank.
- Headquarters – Shanghai.
- The bank will start with an initial paid-in-capital of $50 billion with each BRICS country contributing $10 billion.
- India’s presidency will be followed by Brazil and Russia, who will have a five-year term each under an agreement reached after intense negotiations among the five-country grouping.
- Each participant country will be assigned one vote, and none of the countries will have veto power.
Information about BRICS :
- An association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
- The grouping was originally known as “BRIC” before the inclusion of South Africa in 2010.
- The BRICS nations account for nearly $16 trillion in GDP,equivalent to approximately 20% of the gross world product.
- It has estimated US$4 trillion in combined foreign reserves.
- Accounts for 40 per cent of the world’s population.
- The term “BRIC” was coined in 2001 by then-chairman of Goldman Sachs Asset Management, Jim O’Neill.
- The BRIC grouping’s first formal summit, also held in Yekaterinburg,Russia commenced on 16 June 2009.
- Russia currently holds the chair of the BRICS group, and will host the group’s seventh summit in July 2015.
- Last Summit was held in Fortaleza, Brasília.