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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coastaldigest.com news network
May 14,2020

Kuwait: The COVID-19 pandemic has affected all sections of the community in Kuwait, hundreds of NRIs are stranded due to unavailability of flights to fly back home. Leaders of associations belonging to Karnataka state in Kuwait and other part of Gulf countries have initiated a collective effort to discuss the challenges and issues faced by Kannadigas in Gulf Countries during COVID-19 pandemic.    

Mr. Ramesh S Bhandary – President of Tulu Koota Kuwait and Mr. Rajesh Vittal KKK president along with Other Gulf Karnataka Association leaders held video conference meeting arranged by GULF NRI Forum with Hon. Chief Minister of Karnataka Sri B.S. Yediyurappa to discuss the issue of COVID19 in Kuwait.

During this video conference, association leaders briefly explained various issues, statistics of emergency cases which include pregnant women, Senior citizens, visit visa expired cases and urgent medical treatment requirement cases who wish to travel back to Karnataka.

Evacuation flights to Bengaluru and Mangalore from Kuwait and other Gulf countries, request for free airline tickets or free quarantine facility at Bengaluru and Mangaluru also requested during this video call.

Dedicated Covid - 19 Helpline number for Karanataka NRIs- Nominate One line Contact person in Karnataka to co-ordinates all Covid related issues of NRI.

Responding to leaders requests, B.S Yediyurappa promised to address GCC Kannadigas concerns during this humanitarian crisis.

On Behalf of Kannadigaru Dubai & KNRI Forum , Gulf Kannadigas & Gulf Karantaka associations leaders expressed the happiness with BS Yadiyurappa - Hon Chief Minister of Karnataka, Raghavendra Yadiyurappa - Member of Parliament - Shivamogga constituency, for hearing problems of NRI and giving assurance of immediate action plan to repatriate needy Kannadigas from Gulf region to Karnataka.

Video conference was attended by Karnataka association leaders of Gulf Countries.

Karnataka NRI  Forum Kuwait committee comprising  representatives of leading associations of Karnataka in Kuwait such as Tulu Koota Kuwait (TKK), Kuwait Canara Welfare Association (KCWA), Kuwait Kannada Koota (KKK), Buntara Sangha Kuwait (BSK), Billava Sangha Kuwait (BSK), KKMA Karnataka Branch , Indian Doctors Forum and Karnataka Muslim Welfare Association Kuwait (KMWA).

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News Network
March 31,2020

Kasaragod, Mar 31: Two more Kasaragod natives lost their lives on Monday due to blockade of the interstate border by Karnataka police in the wake of outbreak of novel coronavirus.

They could not get emergency health care as the Karnataka police stopped the ambulance carrying them to a hospital in Mangaluru at the border.

Another critically-ill person, who was sent back by Manguluru hospital authorities on March 23 for being a Kasaragod native, also died on Monday.

This is the fifth such case in many days.

The deceased are Madhavan, 50, Ayesha, 55 and Aziz Haji, 61 respectively.

All three of them lived near the Karnataka border.

Madhavan, who hailed from Thummanattu in Manjeswaram, died enroute to Kanhangad hospital after being denied entry to cross over to Karnataka. He had an acute bronchial attack.

Udyavar native Ayesha, an asthma patient, was referred to the Mangaluru Hospital by the hospital authorities at Uppali. When the authorities stopped her at the border, she was taken to the Kanhangad hospital. However, she died before reaching the hospital.

Aziz Haji, from Nayabazar Cherugoli MA Cottage at Uppala, was allegedly refused entry into a Manguluru Hospital on March 23 on account of being a Kasaragod native. Haji was a dialysis patient at the hospital. “We were unable to contact his doctor at the time,” his relatives said. Haji, who was on the ventilator, lost his life Monday morning.

One more from Kerala dies as Karnataka police stop ambulance at border
Kunjathoor native Abdul Hameed and Bandwal native Fathima also lost their lives due to the closing of the interstate border.

The district authorities has appealed to the Government to intervene in the matter and influence Karnataka as to lift a ban in crossing over for ambulances carrying critical patients.

The people of Kasaragod are largely dependent on the medical facilities in Mangaluru for critical illness care.

The Kasaragod MP, Rajmohan Unnithan has said he would move the Supreme court against this.

Kerala Chief Minister Pinarayi Vijayan has already taken up the issue with the Centre.

Kerala HC takes up issue with Karnataka AAG

The Kerala High Court on Monday sought the views of the Advocate General of Karnataka on the issue of the government of the neighbouring state blocking its borders with Kerala.

Considering a Public Interest Litigation (PIL) filed by Kerala High Court Advocates Association, seeking a direction for opening the roads, a bench comprising Justices A K Jayasankaran Nambiar and Shaji P Chali requested the Advocate General of Karnataka to join the hearing at 11 am on Tuesday through video conferencing.

The Court orally observed that the blockades erecting embankments on the inter-state roads would affect the people's right to life.

The Karnataka government blocked the state highway with to prevent movement of vehicles carrying essential goods and people seeking emergency treatment at hospitals in the city of Mangalore bordering Kasaragod.

With 97 infected patients, Kasaragod has the largest number of COVID-19 cases in Kerala. 7,437 people are under observation in the district.

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News Network
July 1,2020

Bengaluru, Jul 1: Faced with increasing number of COVID-19 cases in the State Capital, Chief Justice of Karnataka High Court Justice A S Okha has decided the Court to function online.

Registrar General Rajendra Badamikar, in the notice issued here on Wednesday, based on order of the Chief Justice, stated that the emergency cases will be conducted through video conference until the next order.

The order also specifies that only the principal seat (Bengaluru) will be conducting proceedings online. High Court benches at Dharwad and Kalaburagi will continue to function as usual.

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