Govt appoints veteran banker K V Kamath as chairperson of Rs 20000-cr NaBFID
New Delhi Oct 27 PTI The government on Wednesday announced the appointment of veteran banker K V Kamath as chairperson of the newly set up Rs 20000 crore development finance institution NaBFID to catalyse investment in the funds-starved infrastructure sector Parliament had in March cleared the National Bank for Financing Infrastructure and Development NaBFID Bill 2021 to support the development of long-term non-recourse infrastructure financing in India including the development of the bonds and derivatives markets necessary for infrastructure financing 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 Department of Financial Services DFS under the finance ministry said in a tweet The DFS in a notification said the central government has appointed K V Kamath to the post of chairperson of NaBFID initially for a term of three years from the date of assumption of charge Kamath the first head of the New Development Bank NDB set up by the BRICS group of countries had completed his five-year tenure last year The 73-year-old banker known among his friends as KV began his career at erstwhile development finance institution DFI ICICI in 1971 Back in 2008 when ICICI Bank was hit by widespread rumours of run-ons Kamath led from the front and was instrumental in its complete turnaround He retired as managing director and CEO in April 2009 and became its non-executive chairman He passed on the baton to Chanda Kochhar who stepped down in 2018 after being embroiled in the ICICI Bank-Videocon money laundering case Kamath an IIM-Ahmedabad alumnus also served on the board of IT major Infosys as the non-executive chairman The DFI has been established as a statutory body to address market failures that stem from the long-term low margin and risky nature of infrastructure financing The DFI therefore has both developmental and financial objectives To begin with the institution will be 100 per cent government owned It will help fund about 7000 infra projects under the National Infrastructure Pipeline NIP which envisages an investment of Rs 111 lakh crore by 2024-25 The DFI will remain outside the purview of CAG CVC and CBI a move aimed at enabling faster decision-making The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years During the pre-liberalised era India had DFIs which were primarily engaged in the development of industry ICICI and IDBI in their previous avatars were DFIs Even the countrys oldest financial institution IFCI Ltd functioned as a DFI In India the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation of India IFCI Subsequently the Industrial Credit and Investment Corporation of India ICICI was set up with the backing of the World Bank in 1955 The Industrial Development Bank of India IDBI came into existence in 1964 to promote long-term financing for infrastructure projects and industry PTI DP DP ABM ABM
New Delhi Oct 27 PTI The government on Wednesday announced the appointment of veteran banker K V Kamath as chairperson of the newly set up Rs 20000 crore development finance institution NaBFID to catalyse investment in the funds-starved infrastructure sector Parliament had in March cleared the National Bank for Financing Infrastructure and Development NaBFID Bill 2021 to support the development of long-term non-recourse infrastructure financing in India including the development of the bonds and derivatives markets necessary for infrastructure financing 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 Department of Financial Services DFS under the finance ministry said in a tweet The DFS in a notification said the central government has appointed K V Kamath to the post of chairperson of NaBFID initially for a term of three years from the date of assumption of charge Kamath the first head of the New Development Bank NDB set up by the BRICS group of countries had completed his five-year tenure last year The 73-year-old banker known among his friends as KV began his career at erstwhile development finance institution DFI ICICI in 1971 Back in 2008 when ICICI Bank was hit by widespread rumours of run-ons Kamath led from the front and was instrumental in its complete turnaround He retired as managing director and CEO in April 2009 and became its non-executive chairman He passed on the baton to Chanda Kochhar who stepped down in 2018 after being embroiled in the ICICI Bank-Videocon money laundering case Kamath an IIM-Ahmedabad alumnus also served on the board of IT major Infosys as the non-executive chairman The DFI has been established as a statutory body to address market failures that stem from the long-term low margin and risky nature of infrastructure financing The DFI therefore has both developmental and financial objectives To begin with the institution will be 100 per cent government owned It will help fund about 7000 infra projects under the National Infrastructure Pipeline NIP which envisages an investment of Rs 111 lakh crore by 2024-25 The DFI will remain outside the purview of CAG CVC and CBI a move aimed at enabling faster decision-making The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years During the pre-liberalised era India had DFIs which were primarily engaged in the development of industry ICICI and IDBI in their previous avatars were DFIs Even the countrys oldest financial institution IFCI Ltd functioned as a DFI In India the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation of India IFCI Subsequently the Industrial Credit and Investment Corporation of India ICICI was set up with the backing of the World Bank in 1955 The Industrial Development Bank of India IDBI came into existence in 1964 to promote long-term financing for infrastructure projects and industry PTI DP DP ABM ABM
