Indian-origin Ajay Banga is the next World Bank chief; US President Biden congratulates

International

oi-Madhuri Adnal

Indian-American business leader Ajay Banga was on Wednesday appointed as the next President of the World Bank, which said it looks forward to working with him on the World Bank Group Evolution process.

The World Bank’s 25-member executive board confirmed that former Mastercard CEO Ajay Banga, 63, is sole nominee for international lender’s presidency.

“The Executive Directors of the World Bank today selected Ajay Banga as President of the World Bank for a five-year term beginning June 2, 2023,” the bank said in a press statement.

In February, President Joe Biden announced that the US would be nominating Banga to lead the World Bank because he is ‘well equipped’ to lead the global institution at ‘this critical moment in history’.

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The former Mastercard Inc. chief, Banga currently serves as Vice Chairman at General Atlantic.
He will take over from David Malpass on June 2, with a reform process already underway and growing demand for increased lending, including climate change.

It must be noted that the World Bank has been led by an American since its founding at the end of World War Two, while the International Monetary Fund has been led by a European. Banga, who was born in India and spent his early career there, has been a US citizen since 2007.

US President Biden congratulates Ajay Banga

US President Joe Biden congratulated Ajay Banga and said,”I want to congratulate Ajay Banga – my nominee for the next President of the World Bank – on his resounding approval by the Bank’s Board of Governors.”

”Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President. And together with World Bank leadership and shareholders, he will help steer the institution as it evolves and expands to address global challenges that directly affect its core mission of poverty reduction-including climate change. Ajay will also be integral in bringing together the public and private sectors, alongside philanthropies, to usher in the fundamental changes in development finance that this moment requires,”Biden said.

”I look forward to working with Ajay in his new role and to supporting his efforts to transform the World Bank, which remains one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe,” he also said.

Who is Ajay Banga?

Ajay Banga is a business executive of Indian origin. He is the former CEO of Mastercard, a multinational financial services corporation. He was born in Pune, India, and later moved to the United States to pursue higher education. He has been recognized for his contributions to the business community and has been named one of Fortune’s “World’s 50 Greatest Leaders” and one of Barron’s “World’s Best CEOs.”

Ajay Banga, a finance and banking veteran, was born into an Indian Army family with roots in Jalandhar, Punjab. However, he was raised in Pune, Maharashtra, where his father was stationed.

After studying economics at St. Stephen’s College in Delhi, he went on to pursue his studies at the Indian Institute of Management in Ahmedabad. He began his career in India, working at Nestle in 1981, followed by positions at Pesipco and Citigroup. Later, he became the President and CEO of Mastercard, a financial services company based in New York, for 12 years before retiring in December 2021.

At Mastercard, he facilitated the entry of 500 million unbanked individuals into the digital economy, prevented 19,000 layoffs during the pandemic, and spearheaded initiatives focused on climate, gender, and sustainable agriculture.

In 2014, he met Prime Minister Narendra Modi in New York, where the two discussed India’s growing influence in the American business community. In recognition of his dedication and contributions to the financial services sector, he was awarded a Padma Shri by the Indian President in 2016, the country’s fourth highest civilian honor.