ICICI Bank signs MoU with BRICS’s New Development Bank

India’s largest private sector lender ICICI Bank has inked a MoU with the BRICS Grouping-promoted New Development Bank (NDB) for a partnership in bond issuances, co-financing, treasury management and human resources.

With this ICICI Bank becomes first financial institution in the country to tie up with the BRICS Grouping-promoted NDB.

The MoU was signed by BDB’s first President and ICICI Bank veteran KV Kamath and ICICI Bank Chief Chanda Kochhar in Mumbai, Maharashtra.

Key facts

  • The MoU will help NDB in exploring rupee-denominated bonds in the domestic and international markets.
  • It will make both the lenders collaborate to fund development projects in India.
  • They will also leverage a mutually beneficial partnership in other areas such as treasury risk management, human resource development and account and cash management services.
  • The MoU will help NDB to leverage the deep market access and insight of ICICI Bank in the India’s financial markets.

About New Development Bank

  • NDB is a multilateral development bank promoted by BRICS nations viz. Brazil, Russia, India, China and South Africa. It is outcome of 6th BRICS Summit being held in Fortaleza, Brazil.
  • It is headquartered in Shanghai, China. It will have a regional office in Johannesburg, South Africa.
  • NDB began its operations in July 2015 with an initial capital of 100 billion dollars.
  • The goal of the bank is to fund infrastructure projects in emerging economies for sustainable development.
  • In the NDB, each participant country has been assigned one vote, and none of the countries have veto power.

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Categories: Banking Current Affairs 2017

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