KV Kamath To Chair New Development Finance Institution
Veteran banker KV Kamath has been appointed as chairperson of the new development finance institution. The National Bank For Financing Infrastructure and Development was announced in the budget and is currently in the process of being set up.
NaBFID will have a board comprising 13 members, including a chairman, four whole-time directors and two government nominees. The remaining will be independent directors. It also intends to hire key management from the private sector based on market-driven compensation metrics, government officials have indicated.
New approach to building #AatmaNirbharBharat!
October 27, 2021
Central Government has appointed Shri K. V. Kamath to the post of Chairperson, National Bank for Financing Infrastructure and Development, a newly set up DFI in India.@FinMinIndiaKamath has long experience in the Indian banking sector and has also led a development finance institution in the past.
For about the first four decades of its existence, ICICI Bank Ltd., which Kamath eventually headed as the chief executive officer, was a development finance institution. Together with IDBI Bank Ltd. and later IDFC Ltd., these institutions were intended to help finance the country's infrastructure development.
The model, however, proved challenging and most, including ICICI, made the transition to universal banking, with Kamath leading the institution away from being a project financier to a retail banking giant. That was in the late 1990s and the early 2000s.
In the years after retiring from ICICI Bank, Kamath also headed the New Development Bank, formerly referred to as the BRICS Development Bank.
The proposed National Bank For Financing Infrastructure and Development is likely to be operational by December 2021, BloombergQuint reported in July.
Finance Minister Nirmala Sitharaman, while presenting the union budget, said the government will provide Rs 20,000 crore as initial capital for the institution. It will leverage that and raise up to Rs 3 lakh crore for lending purposes, Sitharaman had said.
The National Bank For Financing Infrastructure and Development Bill, 2021, was then introduced and passed in March by both houses of the parliament. The NaBFID Act states that the government may guarantee bonds and debentures at the institution's request.
Questions around the extent of guarantee and whether special regulatory dispensation will be provided to this entity remain unanswered.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
