The finance ministry appointed veteran banker K.V. Kamath as the chairman of the newly constituted development finance institution National Bank for Financing Infrastructure and Development (NaBFID) on Wednesday.
The Department of Financial Services in the Finance Ministry in a tweet mentioned: “New approach to building #AatmaNirbharBharat! 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.”
The Parliament passed the NaBFID bill paving the way for the creation of a DFI which will help fund long term infrastructure projects in the country In March this year.
The DFI will be initially wholly owned by the government, but its stake will be reduced to 26% later. The Union budget has allocated ₹20,000 crore to capitalize the DFI, which is expected to create a lending portfolio of at least ₹5 trillion in about three years. It shall be based in Mumbai, with regional offices in different cities.
The 73-year-old is also credited for catapulting ICICI Bank Ltd to the status of India’s second-largest lender. He headed the bank for 13 years until 2009. Kundapur Vaman Kamath, commonly referred to as K. V. Kamath, was the former chief of the New Development Bank of BRICS countries as well.
He was the non-executive chairman of Infosys Ltd, India’s second-biggest software services exporter as well. Kamath also spent eight years at the Asian Development Bank (ADB) in Manila between 1988 and 1996, where he was part of the private sector department. He later returned to India to take over as managing director and chief executive of ICICI Bank.