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
January 8,2020

Bengaluru, Jan 8: The Karnataka government on Tuesday decided to adopt a no-fail approach for Class 7 examinations for government and private schools following the state syllabus.

The report card of a student doesn’t carry ‘pass’ or ‘fail’ remark, but points to his or her strengths and weaknesses in each subject in the exams, which will now be called Common Evaluation Exam.

The quality cell of the Karnataka Secondary Education Examination Board (which conducts SSLC exams) will prepare question papers, which will be evaluated at the district level by government and private schoolteachers. The Class 7 exams will be held in March.

The Common Evaluation Exam follows the Continuous Comprehensive Evaluation (CCE) currently practised under the Right to Education Act. “The formative and summative assessments (tests, projects and quizzes) will be held as usual,”KG Jagadeesha, commissioner of public instruction, said.

Edu dept to launch helpline by March

For the March exam, summative assessment 2 will be held with half the syllabus. Other modalities (exam duration and total marks) will be announced next week,” said KG Jagadeesha. The CCE system will continue for classes 8 and 9. The government hopes the exam and subsequent interventions in classes 8 and 9 will boost students’ confidence for crucial board examinations.

Minister S Suresh Kumar said, “More than an exam, it’s an evaluation of a child’s knowledge. The Belagavi division has done something similar. The Kalaburagi zone found mathematics and science were areas of concern; language was an issue in Urdumedium schools.” The minister said zilla panchayat CEOs have observed that intervention should start from class 8. “Keeping this in mind, we’ve started necessary preparation for class 7 exam ,” he added.

The education department will start a helpline by March for students, teachers, school managements and educationists to 11 raise problems on day-to-day issues.

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News Network
April 28,2020

Bengaluru, Apr 28: Former Chief Minister Siddaramaiah on Tuesday demanded that the Karnataka government announce a "special package" for unorganised sector workers, street vendors and autorickshaw drivers, among others, all daily wagers whose lives are affected by the COVID-19 lockdown. "..a special package needs to be announced to this section of people, this is the demand," Siddaramaiah, who is also Leader of the Opposition in the state assembly, told reporters here.

Alleging that the government has failed to control the spread of coronavirus, he said it is the government's responsibility to take care of the basic needs of those from the unorganised sector, whose lives have been impacted by the lockdown. "It is the duty of the government and they should do it immediately. The package should also be announced. I will hold discussions with leaders of other opposition parties like JD(S), CPI, CPI(M) and BSP in this regard and also on trouble faced by farmers," he added. Alleging discrimination in supply of food packets and ration kits, Siddaramaiah said it was being supplied properly only in constituencies represented by BJP legislators.

"Politics is being played out in supply of food materials to the needy, keeping corporation elections in mind.... We don't want to do politics at this point in time as there is lockdown. If things continue to be the same after the lockdown ends, we will protest on the streets," he said.

Siddaramaiah on Tuesday interacted with representatives of auto rickshaw and cab drivers, street vendors, barbers, unorganised workers organisations, among others, to understand the difficulties faced by them during the lockdown and to know whether help from the government has reached them. He said most of them don't have work and it has become difficult for them to lead their normal lives.

They raised several issues like auto and cab drivers being unable to pay road tax and EMI, he said, adding that he would write a detailed letter to the Chief Minister in this regard The former Chief Minister pointed out that there is about 21 lakh registered organised workers, 1.32 crore lakh unorganised workers and also agriculture labourers in the state.

"Among organised workers only 12.5 of the 21 lakh are said to be getting Rs 2000, that too from the Employees Welfare Fund, while others could not get any money, citing reasons like they have not renewed it," he said.

On the other hand, unorganised sector workers don't get money and were also not getting proper food or ration kits, he alleged Though the labour department claimed that it was supplying one lakh food packets and 1.5 lakh ration kits, as also corporations, there were leakages and it was not reaching the beneficiaries properly, he said.

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News Network
May 6,2020

May 6: Congress general secretary KC Venugopal on Tuesday termed as "inhumane" the government's decision to "impose excessive costs" on NRIs and expatriates for bringing them into the country from COVID-19-affected nations.

He demanded that the central government fly in the poor and vulnerable free of cost while charge the others with normal fares instead of high costs.

"The central government's decision to impose excessive costs on NRIs flying in special flights from the Covid-affected countries is an inhumane act," he said in a statement.

Venugopal said it was due to protests by a large number of expatriates and their relatives as well as the general public over the past few days that the central government took the decision to bring back Indian citizens from abroad.

"However, it is cruel that the Central government has taken advantage of this plight of expatriates by increasing the price of air fares up to three times. This is inhumane," Venugopal said in his statement.

He urged the Centre to take urgent steps to provide free travel to the most vulnerable, unemployed, sick and pregnant women and to others on normal fare.

Air India will operate 64 repatriation flights for a week from May 7 while the Navy deployed two ships as India rolled out a massive evacuation plan on Tuesday to bring back thousands of its nationals stranded abroad due to the coronavirus-triggered lockdown.

Those availing the repatriation flights will be charged, Civil Aviation Minister Hardeep Singh Puri told a virtual press conference in New Delhi. A passenger on a London-Delhi flight will be charged Rs 50,000 and on a Dhaka-Delhi flight Rs 12,000, he added.

From the Gulf countries to Malaysia and the UK to the US, the multi-agency operation christened 'Vande Bharat Mission' will see the state-owned airline operate the non-scheduled commercial flights till May 13 to ferry around 15,000 Indian nationals from 12 countries.

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