New Delhi, May 11: Eminent banker K V Kamath (Chairman of the India’s largest private sector bank ICICI) is appointed as head of the $50-billion New Development Bank being set up by the five emerging economies of the BRICS grouping today. Finance Secretary Rajiv Mehrishi said, kamath will have a five-year term of the bank, which is likely to be operationalised within one year.
Last year leaders of the emerging economies of Brazil, Russia, India, China and South Africa (BRICS) had reached an agreement to establish the New Development Bank. Then it was decided, India got the right to nominate the first president of the bank with its headquarter to be situated by Shanghai . The BRICS nations account for nearly $16 trillion in GDP and 40 per cent of the world’s population.The bank will start with an initial paid-in-capital of $50 billion with each BRICS country contributing $10 billion.