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 executive directors of the World Bank on Wednesday selected Ajay Banga as the president of the World Bank for a five-year term beginning June 2, 2023,” the bank said in a press statement.

In February, US President Joe Biden announced that the US would be nominating Banga, 63, to lead the World Bank because he is “well equipped” to lead the global institution at “this critical moment in history”.

“The board looks forward to working with Banga on the World Bank Group Evolution process, as discussed at the April 2023 Spring Meetings, and on all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries,” the statement added.

Banga, the former Mastercard Inc chief, currently serves as vice-chairman at General Atlantic. Banga is the first-ever Indian-American and Sikh-American to head either of the two top international financial institutions: the International Monetary Fund and the World Bank.

Raised in India, Banga has a unique perspective on the opportunities and challenges facing developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity, President Biden had said.

He has also worked closely with vice-president Kamala Harris as the co-chair of the Partnership for Central America. Banga is expected to take over the reins of the anti-poverty lender at a crucial time, with the US and Western nations pitching for reforms to focus on addressing a slew of wide-ranging global issues like climate change.