“Considering their performance on the interface, their overall experience and existing parameters, the bureau recommended Rajkiran Rai G for the position of MD at NaBFID,” the FSIB said in a statement.
Rai completed his extended term as managing director of state-owned Union Bank of India in May this year.
This is the first choice made by the FSIB after its establishment on July 1, 2022. The former Bank Board Bureau (BBB) has been restructured into the FSIB with certain modifications to its mandate.
Under the National Bank for Financial Infrastructure and Development (NaBFID) Act of 2021, the institution will have one MD and no more than three DMDs.
The government has committed a grant of Rs 5,000 crore on top of an equity capital of Rs 20,000 crore.
In October 2021, the government appointed veteran banker KV Kamath as NaBFID chairman for a three-year term.
Finance Minister Nirmala Sitharaman said in the Union Budget 2021-22 that the government will establish a Development Finance Institution (DFI) to facilitate investment in the underfunded infrastructure sector.
The newly established DFI NaBFID aims to provide financial assistance of Rs 100 crore in its first year of operation.
The DFI was established to support the development of long-term non-recourse infrastructure financing, including the development of the bond and derivatives markets necessary for infrastructure financing, and to conduct infrastructure financing operations.