Saudi based Islamic bank enters India, first branch in Gujarat

[email protected] (CD Network)
June 1, 2016

Ahmedabad, Jun 1: The Saudi Arabia-based Islamic Development Bank (IDB) is set to start its India operations from Gujarat. The international financial institution which has its headquarters in Jeddah has chosen the home state of Prime Minister Narendra Modi to set up its first branch in India. The state will also get 30 medical vans as part of IDB's social sector initiatives.

jeddah

Islamic Development Bank headquarters located in Saudi Arabia's Jeddah.

IDB's main objective is to foster the economic development and social progress of member countries as well as the Muslim community in accordance with principles of Shariah (Islamic law). The bank has 56 Islamic countries as its members.

The developments follow an agreement between India's state-owned Exim Bank and the Islamic Corporation for the Development of the Private Sector (ICD), a private-sector arm of the IDB group, as part of deals signed during Modi's trip to Saudi Arabia in April.

The IDB, a multilateral lender with an authorised capital of $100 billion, counts 56 Muslim nations as its members. Most of these countries belong to the Organisation of Islamic Cooperation.

ISLAMIC BANKING: SOME FACTS 

  • It is a finance system based on the principle of not charging interest, which is prohibited under Islam. Now, it goes by a more formal moniker – participatory banking.
  • Instead of charging interest, the lender shares a part of the profit – or loss – with the borrower
  • It is open to non-Muslims as well
  • By 2020, the global Islamic banking industry profit pool is expected to reach $30.3 billion.

Its India operations will be led by Zafar Sareshwala, a prominent Muslim businessman from Gujarat whom the Modi government appointed chancellor of the Maulana Azad National Urdu University soon after assuming office.

The agreement in Jeddah was signed by Exim Bank regional head Tarun Sharma and ICD CEO Khaled Al Aboodi in the presence of Ahmad Javed, India's ambassador to Saudi Arabia.

To be based in Ahmedabad, the bank will offer interest-free capital to business startups, including small and medium enterprises within India, marking the entry of the Islamic banking – also known as participatory banking – into the country.

According to an Exim Bank statement, the IDB's bigger role will be in the $100 million (about Rs 670 crore) credit line it has pledged “with the aim of facilitating the export of goods and services from India to ICD's member countries”.

“The ICD will be open for business to all Indians, regardless of religious background. In Malaysia, the KFC chain runs on ICD finance although it is owned by a Chinese firm. Some people have this unnecessary issue with Islamic banking, which is actually known as participatory banking across the globe now,” said Sareshwala, who has been named as a director for the bank's India operations.

The IDB has also promised $55m (about Rs 380 crore) for a state-of-the-art rural mobile medical network – the first leg of which will be launched in Gujarat.

The IDB, which complies with global Islamic finance norms, does not charge interest on loans because the religion prohibits it. Instead, it charges a part of the profit and also shares any losses with the borrower.

According to the EY's World Islamic Banking Competitiveness Report 2016, Global Islamic banking assets would have reached US$1 trillion by 2015-end.

Comments

Ahmed
 - 
Thursday, 2 Jun 2016

Poorna Prakash, Mangalore
We have since long following banks
Catholic Syrian Bank
Nakodar Hindu Bank
The Hindu Co-Operative Bank Ltd.

But, you have a problem as soon as we get a Islamic bank.
This is nothing else but, intolerance.

Don't forget another bank: The Hindu Vote Bank.

Rikaz
 - 
Wednesday, 1 Jun 2016

Why feku's state is getting all of those facilities? why don't they bring it to Karnataka....

suresh
 - 
Wednesday, 1 Jun 2016

All the investment only to gujarat? Why? This investment will be mis used by Gujju's as it says if the business in loss it will be shared by both. gujju's are well known how to make them fool. This will create more mallya;s in Gujarat.

moshu
 - 
Wednesday, 1 Jun 2016

Hope one day rss will understand islam well and will follow the rule of Allah

moshu
 - 
Wednesday, 1 Jun 2016

Siddarth mumbai openly backing his hawala racket crooks operating by his modi govt

Naren kotian
 - 
Wednesday, 1 Jun 2016

It is done to curb India's black money outflow and inflow by hawala means ..since 90% of hawala transactions are mostly encouraged by just particular section ...anyways since they have given 100 million credit line ..so we have ample opportunity to export pig related products to 56 Islamic countries ..hahaha ...nia monitoring is must as terrorists are most likely to use this bank ...

muhammed rafique
 - 
Wednesday, 1 Jun 2016

Appreciate Modi's wisdom in realising the importance of Islamic banking

Rizwan
 - 
Wednesday, 1 Jun 2016

Good initiative by P.M , i appreciate his move. Both india and KSA will be benifited by this.

Asif
 - 
Wednesday, 1 Jun 2016

Al Hamdlillah... itrs great news... waiting from a long time... hope it soon opens its branches all over India.

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News Network
June 13,2020

Mandya, Jun 13: Degree colleges will begin classes after the lockdown is lifted and dates for examinations will be announced later, said deputy chief minister CR Ashwath Narayan on Friday.

Speaking at College of Agriculture, Mandya (VC Farm) on Friday, Ashwath Narayan said the lockdown will be completely phased out on June 30 and degree colleges will begin classes after that. “We will speak with all stakeholders to chalk out measures as to how to reopen degree colleges amidst coronavirus scare. All students must continue their studies and be prepared for exams,” he said.

Narayan said the cabinet has approved to upgrade VC Farm as a university and an ordinance will soon be promulgated in this regard. “There is a need to change the present curriculum to meet present day requirements. VC Farm will be made into a world class agriculture university and a vice chancellor will be appointed,” he said.

“Apart from traditional education, we must concentrate on skill-based education as it should create more job opportunities. We are committed to establish more skill-based educational institutes in Mandya district,” Narayan said.

Later Narayan visited Shivaragudda near Maddur and inspected 48 acres of government land which could be used for establishing skill-based education institutions. “This land was earlier used for imparting skill-based education in a collaboration with Denmark. Sir M Visvesvaraya had established skill-based institutions here in 1923 and now they have become defunct. The then prime minister of Denmark had inaugurated this century old institution. We will revive it and this will help local youths,” he said.

‘Ticket promised only to R Shankar’

When asked, Narayan said R Shankar, who quit the Congress-JD(S) coalition and joined BJP will be given a party ticket to contest the legislative council election. “Except Shankar, the high command did not promise council tickets to those who quit congress and JD(S) and joined our party. It is true that there is hectic lobbying in BJP to get tickets,” he said.

Comments

Tejashwini
 - 
Friday, 24 Jul 2020

Sir when does degree clg gets reopen  in karnataka

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News Network
May 1,2020

Bengaluru, May 1: As Mumbai link surfacing in some COVID-19 cases in Mandya district in Karnataka, JDS leader and former chief minister H D Kumaraswamy on Friday blamed the district administration for the situation, accusing it of not quarantining 7,000 labourers who 'returned' from the Maharashtra capital.

"The information we have is that there are about 16,000 labourers from Mandya were working in Mumbai of which 7,000 people reached the district. None of them was quarantined properly," Kumaraswamy told reporters in Bengaluru.

He claimed the district, a stronghold of JDS, was staring at a major spurt in cases due to the careless attitude of the district administration. "Government should initiate action against those who are responsible for the laxity," he said.

However, he did not specify when the 7,000 workers returned to Mandya. When asked about Kumaraswamy's claim, officials said they have to verify it. Of the eight cases reported from Mandya on Friday, three had a travel history to Mumbai, a major COVID-19 hotspot in the country, officials said.

A Health Department official said four of the fresh cases were contacts of a patient who tested positive on April 8 and admitted to a hospital. After weeks of coming in contact with him, the four were confirmed for COVID-19, an official said. The Three people with travel history to Mumbai had, in fact, brought the body of a man who died of a heart attack there on April 24, the official added.

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News Network
March 11,2020

Bengaluru, Mar 11: Did Congress party’s Man Friday, DK Shivakumar, not rise up to the occasion and save the situation for the party, whose rebel MLAs were flown into Bengaluru to unsettle the Kamal Nath-led government in Madhya Pradesh? Shivakumar told The New Indian Express on Tuesday, “So far, I have not got any clear direction on what has to be done. But I am in touch with the central leaders. The party does not want to antagonise them... They are our own MLAs.”

He said that the Tenth Schedule, which makes defections illegal, is very strong. “It is not so easy for them once they are expelled. There are courts and then they have to get re-elected. It is not easy to get minister’s post after getting re-elected,” he added.

When pointed out that rebels from the Congress and JD(S) who joined the BJP have got re-elected and become ministers, he said, “There are other issues here.”

Asked about Digvijay Singh, who is at the centre of the controversy in MP and who was AICC general secretary in-charge of Karnataka, not being able to prevent the rebellion in his home state, Shivakumar said, “I do not want to comment on any of our national leaders.”But he was confident that the Congress government would be saved in MP. “I am aware of the developments and keeping track of them,” he said.

Congress leaders seemed wiser after the event.

One of them, who wished not to be identified, said the party clearly did not see the writing on the wall. “Jyotiraditya Scindia supported the BJP at the Centre when it scrapped Article 370. Later too he was not in line with the Congress position on several issues. But during the recent Delhi violence, he criticised the BJP, sending confusing signals,” he added.

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