KV Kamath: Journey from ICICI Bank to BRICS Bank chief

Eminent banker KV Kamath will be the first president of $100-billion Shanghai-headquartered BRICS Bank, which will provide infrastructure loans to emerging nations as an alternative option to multilateral lenders World Bank and the International Monetary Fund (IMF).

Leaders of Brazil, Russia, India, China and South Africa (BRICS) had last year reached an agreement to establish the New Development Bank.

As per the agreement, India got the right to nominate the first president.

India's presidency will be followed by Brazil and Russia.

"Kamath, 67, will have a five-year term at the bank, which is likely to be operationalised within one year as 'New Development Bank' being set up by the five nation grouping BRICS," finance secretary Rajiv Mehrishi said.

"The appointment will be effective when he becomes free from his current assignment. I think he is on some Boards. It may take couple of days," he added.

Kamath, the non-executive chairman of ICICI Bank and also IT bellwether Infosys, will have to quit these posts before he takes up the position at BRICS Bank.

After serving at ICICI for more than a decade, Kamath had moved to Asian Development Bank (ASB), Manila, in 1988. "We got a ratification (for BRICS Bank) from the President of India.

The last country to ratify BRICS Bank would be Brazil. Starting the operations will depend upon Mr. Kamath and member countries," Mehrishi said. "India expects more money for infrastructure development from BRICS Bank," he added.

The bank will start with an initial paid-in capital of $50 billion with each BRICS country contributing $10 billion while its authorised capital is $100 billion.