US President Joe Biden on Thursday nominated Indian-American business leader Ajay Banga, former chief executive of Mastercard, to lead World Bank. The nomination will initiate a months-long confirmation process before a final decision by the World Bank's board.


"Ajay Banga is uniquely equipped to lead the World Bank at this critical moment in history," President Biden said in a statement. "He has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies, and guiding organizations through periods of fundamental change," Biden further said.


Banga will bring his vast experience in running large organisations and deep knowledge of the digital economy if his nomination is confirmed, NYT reported.


He is a member of the Council on Foreign Relations and The Economic Club of New York, as well as a fellow of the Foreign Policy Association.


Treasury Secretary Janet L Yellen, who is in India, said Banga's background would make him an important partner at the World Bank for reducing poverty and combating climate change, NYT reported.


"Ajay Banga understands that those core objectives are deeply intertwined with challenges like meeting ambitious goals for climate adaptation and emissions reduction, preparing for and preventing future pandemics, and mitigating the root causes and consequences of conflict and fragility," Yellen said.


The development comes after David Malpass, the current World Bank president, recently announced his intention to step down by the end of June, with nearly a year left in his five-year term. 


Malpass, who was nominated by former President Donald Trump, came under fire from climate activists and had upset several officials of the Biden administration due to his lack of focus on the bank's climate agenda.


Who Is Ajay Banga?


Banga is presently a vice chairman of General Atlantic, a private equity firm. In 2021, he retired from Mastercard after running the company for more than a decade. During his long stint, he was credited for quadrupling its profits and became one of the most prominent Indian American executives in the US.


Before Mastercard, Banga worked for more than a decade at Citigroup and at Nestle in India. He also spent two years at Pepsico, where he was instrumental in launching Pepsico's international fast food franchises in India.


Born in India, Banga is the son of an Army general. The business leader completed his graduation in economics from Delhi University. He is also an alumnus of the Indian Institute of Management, Ahmedabad.