AT THE HELM
AT THE HELM - Ajaypal Singh Banga, President, World Bank
- IBJ Bureau
- Jun 06, 2023
![](https://indiabusinessjournal.com///website/images/featured_image/1c727e8a65ebe44212c060cdb2370ea9092a32fc.jpg)
Early in May, Ajaypal Singh
Banga, better known as Ajay Banga, created history after being unanimously
elected the president of the World Bank. The prestigious post, usually occupied
by an American – similarly, the IMF chairperson has always been a European –
went to an Indian American this time after the board of governors of the
Washington DC-based multilateral agency voted for Mr Banga. In February, US
President Joe Biden had nominated Mr Banga to the high office to succeed David
Malpass.
Mr Banga, the former CEO of
Mastercard and ex-CEO of Citigroup’s Asia-pacific business, has been a US
citizen since 2007. The 63-year-old former corporate executive was until
recently vice-chairman of global private equity company General Atlantic. Experts
tracking global multilateral agencies opine that Mr Banga as the World Bank head
is set to bring much-needed reforms at the global lender. They cite the new
World Bank chief’s previous record as a successful top executive of many
multinational companies, who has also been active across various social welfare
fora.
Born in Pune, young Ajaypal
had spent his childhood in various cities as his army-man father took up
postings across the country. He completed his bachelor’s degree in economics
from Delhi’s St Stephen’s College and later graduated out of IIM Ahmedabad. He
began his career with Nestle in India and spent the next 13 years working in
jobs spanning across sales, marketing and general management. Later he joined PepsiCo
and was involved in the launch of its international fast food franchises,
including Pizza Hut and KFC, in India as the economy liberalised.
In 1996, Mr Banga joined
Citigroup and worked across the global bank’s divisions, swiftly climbing the
corporate ladder. As CEO of Citi’s International Global Consumer Group, he spearheaded
the top lender’s strategy in the microfinance sector across the world. In 2008,
Mr Banga became the CEO of Citigroup’s Asia-Pacific business and led a major
reorganisation of Citi’s Asian operations.
Mr Banga took over as CEO
of Mastercard in 2008 at the height of the global financial crisis. Undeterred
by the gloom, he led a team of executives and pushed the use of credit card
across the world. Soon, the payment processor’s revenue tripled and its net
income grew by six times. Under his leadership, Mastercard launched the Center
for Inclusive Growth, which continues to advance equitable and sustainable
economic growth and financial inclusion around the world. After retiring from
Mastercard in December 2021, Mr Banga was roped in as vice-chairman of General
Atlantic.
Mr Banga was equally
passionate about contributing to social and ecological causes throughout his
illustrious career in the corporate world for over three decades. He has been a
part of the Priceless Planet Coalition, a group of about 100 companies that
make corporate investments to preserve the environment. He is also an adviser
to General Atlantic’s climate-focused fund BeyondNetZero.
Mr Banga takes charge of
the World Bank at a crucial period when most of the world is battling scorching
inflation and economic slowdown. There are other issues such as debt crisis of lower
and middle-income countries, rising global poverty and hunger and perils of
climate change. Hopes are running high on the new World Bank chief making a
positive difference, given his impeccable past track record.
Report By