Rajkiran Rai G, a former managing director of the Union Bank of India, has been recommended by the Financial Services Institutions Bureau (FSIB) to lead the newly established NaBFID, which will cost Rs 20,000 crore. After conducting interviews with the five finalists, the headhunter for state-owned banks and financial institutions chose the managing director for the National Bank for Financing Infrastructure and Development (NaBFID).
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- In May of this year, Rai finished his extended stint as managing director of the state-owned Union Bank of India.
- The FSIB has made this decision as its first decision after its incorporation. The former Banks Board Bureau (BBB) was transformed into the FSIB with some changes to its mandate.
- The institution will have one MD and no more than three DMDs, in accordance with the National Bank for Financing Infrastructure and Development (NaBFID) Act of 2021.
- In addition to the equity capital of Rs 20,000 crore, the government has pledged a grant of Rs 5000 crore.
- The government nominated senior banker KV Kamath to lead the NaBFID for three years in October 2021.
- The government would establish a development financial institution (DFI) to stimulate investment in the fund-strapped infrastructure sector, according to Finance Minister Nirmala Sitharaman‘s statement in the Union Budget 2021–22.
- In its first year of operation, the recently formed DFI NaBFID aims to provide financial assistance worth Rs 1 lakh crore.
- The DFI was established to assist in the growth of long-term non-recourse infrastructure financing, including the growth of the bonds and derivatives markets required for infrastructure financing, as well as to conduct the business of financing infrastructure.