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India’s ICICI Bank signs MoU with BRICS’ development bank for business partnership

BBR Staff Writer Published 06 May 2016

India’s private sector lender ICICI Bank has signed a Memorandum of Understanding (MoU) to establish a strategic business partnership with New Development Bank (NDB), a multilateral development bank set up by BRICS (Brazil, Russia, India, China and South Africa) nations.

ICICI Bank building

As part of the pact, the two banks will consider each other as "preferred" partners. Both the lenders will leverage their respective expertise to establish a long-term relationship in the areas of bond issuances, co-financing, treasury management and human resources.

ICICI Bank is the first Indian financial institution to sign an MoU with NDB. Chanda Kochhar, MD & CEO, ICICI Bank and K V Kamath, President, NDB, signed the MOU on behalf of their organizations.

Kamath said: "This MoU creates a platform for sharing knowledge and deepening network connectivity between NDB and ICICI Bank.

"Our mandate prescribes partnering with local development banks in member countries and this MoU will enable NDB to leverage the deep market access and insight of ICICI Bank in India's financial markets.

"As partners, we look forward to an efficient client and market development that will enable us to enhance our long-tenor financial assistance in India."

Under the partnership, both the banks will collaborate in the area of funding development projects in India.

The partnership will also assist NDB in identifying bond issuance opportunities in the Indian and international bond markets, particularly INR-denominated bonds, ICICI Bank said in a statement.

Besides, ICICI Bank and NDB will work to build a mutually beneficial partnership in other areas of operations such as treasury risk management, account and cash management services and human resource development

Chanda Kochhar said: "It is a matter of great pride to form this alliance with NDB. There are several synergies between the two organisations and we hope that this MoU will harness this and benefit both in the long run.

"This partnership will give both parties an opportunity to work together and leverage their respective strengths in the areas of resource raising, development finance and treasury risk management in a mutually beneficial manner."

NDB was set up in July 2015 with an authorised capital of USD 100bn and BRICS nations have brought in capital of $1bn as initial contribution.

Last month, the bank announced that it would lend $811m to clean energy projects in India, China, Brazil and South Africa.

Image: ICICI, an Indian multinational banking and financial services company's branch located in Knightsbridge, London. Photo courtesy of Karthik Nadar/ WIkipedia