Indian-born American businessman Ajay Banga, 63, has been elected as the new President of the World Bank.

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Following the decision of the 25-member executive board to elect the sole contender for the position, he will assume office effective June 2, replacing David Malpass who has served for the past four years.

"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,” said the group in a statement.

Banga was previously the Vice Chairman at General Atlantic and former CEO of Mastercard. He is also a co-founder of The Cyber Readiness Institute and was Vice Chair of the Economic Club of New York.

He has a wide range experience with developing economies and financial expertise expected to enforce the global institution facing a critical moment of transition.

He joins the lender at a critical time of revamping to tackle climate change and other global crises.

Banga, who spent his early career in India, became a US citizen in 2007.

He has an extensive background in the private sector, with a long career in finance and banking.

Born in Pune, Maharashtra, Banga holds a bachelor's degree in Economics from St. Stephen's College, Delhi University, and a PGP in Management from the Indian Institute of Management-Ahmedabad (IIM-A). In 2016, the Indian government awarded him the fourth-highest civilian award, Padma Shri.

In February, US President Joe Biden nominated Banga for the top post at the World Bank, describing him as uniquely equipped to lead the institution "at this critical moment in history."

Biden said that Banga has spent more than three decades building and managing successful global companies, creating jobs, and bringing investment to developing economies. He has a proven track record managing people and systems, and partnering with global leaders around the world to deliver results.

Banga has also been awarded numerous honors for his contribution to trade and industry, including the Foreign Policy Association Medal, the Ellis Island Medal of Honor, and the Business Council for International Understanding's Global Leadership Award.

The World Bank president is traditionally an American citizen who is chosen by the United States, while the managing director of the International Monetary Fund is chosen by the European Union.