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.

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 28,2020

Mangaluru, Mar 28: Dakshina Kannada District observed a total shutdown on Saturday with closure of all shops, barring milk booths and pharmacy, to prevent spread of deadly Coronavirus.

The Central Market, a hub of activities where vegetables, groceries, flowers are sold, remained closed. Despite the milk booths and pharmacies being exempted from the purview of bandh, only a few milk booths remained open here.

The administration decided to go far bandh ion the wake of people failing to follow the lockdown guidelines of maintaining social distance and some wandering on the streets without valid reason. Moreover, there was increase in the number of corona cases despite measures taken, Deputy Commissioner Sindhu B Rupesh said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 1,2020

Mangaluru, Apr 1: The rush for purchase of essential commodities has eased in several places in Dakshina Kannada with the relaxation of lockdown from Wednesday between 7 am and 12 noon by the district administration. However, a few markets in Mangaluru still had queues in front of vegetable shops on Wednesday.

Vegetable shops and markets in Mallikatte, Kadri, Bejai-Kapikad, Urwastore, Mannagudda and Carstreet areas were crowded with people violating social distancing norms due to the coronavirus crisis.

To avoid swelling of crowds at Central Market in Mangaluru, the market was opened only for wholesalers to collect vegetables. The entry of public to Central Market was prohibited.

MCC Commissioner Ajith Kumar Hegde Shanady said that retail sale is prohibited at Central Market.

The Surathkal market too has been closed from April and traders from the market are allowed to sell essential commodities at alternative locations from 7 am to 12 noon.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Wafa Sultana
April 4,2020

Over the last couple of days when the world was occupied with unifying efforts to fight the deadly Covid19 pandemic, sections of Indian media provided viewers a familiar scapegoat – the Indian Muslims – who are often stereotyped as a community being constantly at loggerheads with the citizenry and the State. Biased media channels were quick to resort to blaming the entire Muslim community for the spread of the disease in the country, thanks to an ill-timed Tablighi Jamaat gathering at its international headquarters in Delhi’s Nizamuddin. Unsurprisingly, the opprobrium was also marked by a sudden spike in WhatsApp forwards of videos with people wearing skullcaps licking spoons and performing Sufi breathing rituals, suggesting some sort of wild conspiracy on the part of the community to spread the virus.  Some media channels were quick to formulate, hypothesize and provide loose definitions of a newly discovered form of Jihad i.e. ‘Corona Jihad ’ thereby vilifying the Islamic faith and its followers.

While the investigation on the culpability of the organizers of the Nizamuddin event is still ongoing, there is enough information to suggest that the meeting was held before any lockdown was in force, and the problem began when there was no way of getting people out once the curfew was announced. Be that as it may, there is little doubt that organizing a meet of such a scale when there is a global pandemic smacks of gross misjudgment, and definitely the organizers should be held accountable if laws or public orders were defied. Attendees who attempt to defy quarantine measures must be dealt with strictly. However, what is alarming is that the focus and narrative have now shifted from the unfortunate event at Nizamuddin to the Tablighi Jamaat itself.

For those not familiar with the Tablighi Jamaat, the organization was founded in 1926 in Mewat by scholar Maulana Mohammad Ilyas. The Jamaat’s main objective was to get Muslim youth to learn and practice pristine Islam shorn of external influences. This is achieved through individuals dedicating time for moral and spiritual upliftment secluded from the rest of the world for a brief period of time. There is no formal membership process. More senior and experienced participants typically travel from one mosque to other delivering talks on religious topics, inviting local youth to attend and then volunteer for a spiritual retreat for a fixed number of days to a mosque in a nearby town or village to present the message to their co-religionists. Contrary to ongoing Islamophobic rhetoric, the movement does not actively proselytize. The focus is rather on getting Muslims to learn the teachings and practices of Islam.  This grassroots India-based movement has now grown to almost all countries with substantial Muslim populations. Its annual meets, or ‘ijtemas’ are among the largest Islamic congregations in the world after the annual Haj. One of the reasons for its popularity and wide network in the subcontinent and wordwide is the fact that it has eschewed the need for scholarly intervention, focusing on peer learning of fundamental beliefs and practice rather than high-falutin ideological debates. The Tablighi Jamaat also distinguishes itself from other Islamic movements through its strictly apolitical nature, with a focus on individual self-improvement rather than political mobilization. Hardships and difficulty in the world are expected to be face through ‘sabr’ (patience) and ‘dua’ (supplication),  than through quest for political power or influence. In terms of ideology, it is very much based on mainstream Sunni Islamic principles derived from the Deobandi school.

So, why is all this background important in the current context? While biased media entities have expectedly brought out their Islamophobic paraphernalia out for full display, more neutral commentators have tried to paint the Tablighi Jamaat as a fringe group and have tried to distance it from 'mainstream Muslims'. While the intent is no doubt innocent, this is a trap we must not fall into. This narrative, unfortunately, is also gaining ground due to apathy some Muslims have for the group, accusing it of being “disconnected from the realities of the world”. Unlike other Muslim organizations and movements, the Tablighi Jamat, by virtue of its political indifference, does not boast of high-profile advocates and savvy spokespersons who can defend it in mainstream or social media.  The use of adjectives such as 'outdated' and 'orthodox' by liberal columnists to describe the Jamaat feeds into the malignant attempt to change the narrative from the control of the spread of the pandemic due to the Nizamuddin gathering to 'raison d'etre' of the organization itself.

A large mainstream religious group like the Tablighi Jamaat with nearly a hundred-year history, normally considered to be peaceful, apolitical and minding its own business is now suddenly being villainized owing to unfortunate circumstances. Biased media reactions filled with disgust and hate seem to feed the Indian public conscience with a danngerous misconception - to be a nominal Muslim is okay but being a practicing one is not.  For those committed to the truth and fighting the spread of Islamophobia, the temptation to throw the entire Tablighi Jamaat under the bus must be resisted.

The writer is a lawyer and research scholar at Qatar University. Her research interests include Islamic law and politics.

Comments

zahoorahmed
 - 
Saturday, 4 Apr 2020

great article! provides a great perspective on tableeg jamat

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.