ICICI's KV Kamath will head the BRICS New Development Bank

Banker K.V. Kamath was on Monday appointed head of the BRICS New Development Bank being set up by the group of emerging economies formed by Brazil, Russia, India, China and South Africa. Kamath, currently the non-executive chairman of ICICI bank, will have a five-year term at the BRICS bank, which is likely to be operationalised within one year, Finance Secretary Rajiv Mehrishi told reporters here. At the BRICS summit in Brazil last year, the leaders had reached an agreement to establish the $100 billion New Development Bank, with its headquarters in Shanghai. As per the agreement, India got the right to nominate the first president. [caption id=“attachment_3616” align=“alignleft” width=“380”] K.V. Kamath, taking over the reins. Reuters[/caption] The bank will begin with a $50 billion paid up capital contributed equally by its five founding member countries, with an initial total of $10 billion in cash put over seven years and $40 billion in guarantees. Another $50 billion is expected to come from other members who join in. India will preside over the bank’s operations for the first six years, followed by five-year terms for Brazil and then Russia. Kamath retired as managing director and chief executive of ICICI bank in April 2009, and has also spent several years in southeast Asia working with the Asian Development Bank. He was conferred with the Padma Bhushan - India’s third highest civilian honour - in 2008. Agencies