New Development Bank, the multilateral lending bank set up by BRICS, is considering leveraging $10 billion in first six to seven years as the institution expects its lending to double every year over the next two-three years.
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NDB President KV Kamath said the bank will try to meet the expectations of all members by increasing the pie. "So, we did get off to a start in the first year and in the second year, we would try to double our lending. I would think that in the next 2-3 years we would virtually double our lending every year," he said.
The BRICS bank established by Brazil, Russia, India, China and South Africa had started operations in 2016. The bank primarily mobilises resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies with an initial authorised capital of $100 billion.
NDB would also increase its staff strength over three-fold going forward. "By the end of this year, we will have a staff strength of 125-130 people. In the next three years, that is from year two to year five, we will take it up to 400 or so," Kamath told PTI.
Last year, NDB's board had approved seven investment projects in all member countries for a total of over $1.5 billion, including two projects worth $600 million in India.
Kamath, who was instrumental in his role while he headed India's largest private sector lender ICICI Bank, said NDB would go for new products by the third year.
"Loans consume capital in a very heavy way. There are a lot many other ways with which you can contribute to growth, but not use your capital. By the third year or so, we should be able to do the other types of work that we need to do. That will probably make the capital go further," he said.
Commenting on if BRICS are also considering a rating agency, he said, "That is something happening at the BRICS countries level and NDB is not involved in it. We will see how it evolves."
