KV Kamath to resign from various boards and join BRICS Bank in next 10 days: Finance Secretary

NEW DELHI: Eminent banker K V Kamath will take over as the first president of $100 billion BRICS bank in next 10 days after he resigns from various board positions he holds, Finance Secretary Rajiv Mehrishi said today.

The New Development Bank -- promoted by the five emerging economies (Brazil, Russia, India, China and South Africa) to meet developmental credit needs -- will become functional sometime next year, he told reporters here.

"Kamath will join in the next week or 10 days after he resigns from various boards," Mehrishi said.

The 67-year-old banker is the non-executive Chairman of the India's largest private sector bank ICICI. He is also the non-executive chairperson of the IT bellwether Infosys.

Leaders of BRICS nations had last year reached an agreement to establish the New Development Bank, with its headquarters in Shanghai. As per the agreement, India got the right to nominate its first president.

The BRICS nations account for nearly $16 trillion in GDP and 40 per cent of the world's population.

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

BRICS bank requires ratification by all the five countries of the grouping of emerging market nations.

"Brazil ratification is expected only by the end of this year because they have a longer parliamentary procedure for this. So probably the bank will become functional sometime next year," Mehrishi said.

Member nations of the bank are working on making it functional by the end of this financial year, he said.

India is hoping to get more funds for infrastructure development from the bank.

Equal capital contribution has been decided so that the development bank does not fall into the ownership pattern of IMF and the World Bank, with a distorted shareholding.