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
May 11,2020

Bengaluru, May 11: Janata Dal (Secular) leader HD Kumaraswamy on Monday asked Chief Minister BS Yediyurappa to urge PM Narendra Modi to give a 'COVID Package' to Karnataka.

In a series of tweets, Kumaraswamy said that Yediyurappa should raise the demand during the course of the meeting scheduled to be held today with the PM, which will also be attended by Chief Ministers of other states.

"Prime Minister Narendra Modi will hold talks with CMs from different states on coronavirus control and lockdown today. The state's CM BS Yediyurappa will also be in it. At this meeting, BSY should urge Modi to offer a 'COVID Package' to the state," Kumaraswamy's tweet, roughly translated in English from Kannada, read.

In subsequent tweets, the JDS leader said that, "The central government has set up a PM Cares Fund for the fight against Corona. As MPs, entrepreneurs and citizens have made generous donations. BSY must convince Modi that the state has not received adequate financial support from the Center so far."

He further said that the package could be utilised for "medical procedures", "financial compensation for the affected people."

Kumaraswamy also said that "In addition to the 'COVID Package', other dues from the Center, including GST dues, flood relief, etc should also be asked for by BS Yediyurappa at the meeting with Modi."

PM Narendra Modi will hold a meeting, through video conference, with state Chief Ministers on Monday at 3 pm to discuss the prevailing COVID-19 situation in the country.

The Prime Minister had earlier interacted with Chief Ministers four times over the COVID-19 situation via video conferencing.

The upcoming interaction comes days ahead of the scheduled ending of the nationwide lockdown.

The ongoing lockdown, which was imposed to contain the spread of coronavirus, is scheduled to end on May 17.

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Ram Puniyani
July 20,2020

As Covid 19 has created havoc all rounds, the rulers of certain countries are using it to further intensify their set agendas. The democratic freedoms are being curtailed in certain forms, the reaction to which has come in America in the form of a campaign, which is opposing “stifling” cultural climate that is imposing “ideological conformity” and weakening “norms of open debate and toleration of differences”. In India similar intimidations have been intensified. In addition the occasion has been used by the sectarian forces first to link the spread of Corona to Muslim community and now in the name of reducing the burden of curriculum certain chapters on core concepts related to Indian nationalism are being deleted from the text books.

It has been reported that chapters on federalism, citizenship, nationalism, secularism, Human Rights, Legal Aid and Local Self Government and the like are being dropped. Education has been an important area for communal forces and they constantly keep saying that leftists have dominated the curriculum content, it suffers from the impact of Macaulay, Marx and Mohammad and so needs to be Indianized. The first such attempt was done when BJP came to power in 1998 as NDA and had Murli Manohar Joshi as the MHRD minister. He brought the changes which were termed as ‘saffronization of education’. Their focus is more on social science. Some of the highlights of this were introduction of subjects like Astrology and Paurohitya, and chapters defending caste system, nationalism of the type of Hitler was praised.

With defeat of NDA in 2004, the UPA did try to rectify some of these distortions. Again after 2014 the RSS affiliates working in the area of education have been active, interacting with MHRD officials to impress upon them the need to change the curriculum matching with their Hindu nationalist agenda. Its ‘Shiksha Sanskriti Utthan Nyas’ has been asking for removal of English, Urdu words in the texts. It has asked for removal of thoughts of Rabindranath Tagore on Nationalism, extracts of autobiography of M F Husain, references to benevolence of Muslim rulers, references to BJP being Hindu party, apology of Dr. Manmohan Singh for anti Sikh pogrom of 1984, the reference to killings of Gujarat carnage in 2002 among others. This they call as Bhartiykaran of syllabus.

As RSS is a multithreaded hydra one of its pracharak Dinanath Batra has set up ‘Shiksha Bachao Abhiyan Samiti’ which has been pressurizing various publishers to drop the books which are not conforming to their ideology. One recalls their pressuring withdrawal of Wendy Doniger’s ‘The Hindus’, as it does present the ancient India through the concerns of dalits and women. Mr. Batra has already come out with a set of nine books for school curriculum, giving the RSS view of the past and RSS understanding of social sciences. These have already been translated into Gujarati and thousands of the sets of these books are being used in Gujarat Schools.

The present step of deleting parts of curriculum which gives the basics of Indian Nationalism, secularism and human rights is a further step in the same direction. These are the topics which have made the Hindu nationalists uncomfortable during last few years. They have been defaming secularism. They removed it from the preamble of Indian constitution, when they put out an ad on the eve of Republic day in 2015. From last few decades since the Ram Temple movement was brought up, simultaneously the secular ethos of India’s freedom movement and secular values of Indian constitution have been constantly criticized. Many an RSS ideologues and BJP leaders have been asking for change of Indian Constitution for this very reason.

Secularism is part of the concept of Indian nationalism. In the name of religious nationalism, sectarian divisive nationalism they have been attacking various student leaders in particular. When we study Nationalism, the very genesis of Indian nationalism tells us the plurality of our freedom movement with its anti colonial roots. The struggle was for Indian nationalism and so the Muslims and Hindu communalists kept aloof from this great struggle against colonial masters, it was this struggle which built the Indian nation with all its diversity.

Similarly as we have equal rights as citizens the chapters on citizenship are being dropped. Federalism has been the core part of India’s administrative and political structure. As the dictatorial tendencies are becoming stronger, federalism is bound to suffer and that explains the dropping of this subject. Democracy is decentralization of power. Power reaching the lowermost part of the system, the villages and average citizens. This got reflected in Local self Government. The power is distributed among villages, cities, state and center. By removing chapters on federalism and local self government, the indications of the ideology of ruling party are on display.

While we are not dealing with all the portents of the planned omissions, one more aspect that related to dropping of chapter on Human rights needs our attention. The concept of Human rights and dignity are interlinked. This concept of Human rights also has international ramifications. India is signatory to many an UN covenants related to Human rights. The indications are clear that now rights will be for the few elite and ‘duties’ for the large deprived sections will be put on the forefront.

In a way this incidental ‘Corona gifted opportunity’ to the ruling Government is being fully used to enhance the agenda of ruling party in the arena of Educational Curriculum. The part of curriculum with which the ruling party is uncomfortable is being removed. This act of omission does supplement their other acts of commission in changing the shape of educational curriculum, which are reflected in RSS affiliates’ suggestions to MHRD regarding Bhartiyakaran of contents of syllabus. As per this the things like regarding the great epics like Ramayana and Mahabharata as History, the things like India having all the stem cell technology, plastic surgery, aviation science etc. will have a place in the changes planned by communal forces!

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News Network
April 28,2020

Bengaluru, Apr 28: Karnataka has found that the rapid antibody test kits for COVID-19 that the Centre supplied to the state have only 47% sensitivity. The state will be returning the kits to the Indian Council of Medical Research (ICMR).

Karnataka had received 11,400 rapid antibody test kits from the ICMR a few days back, out of which it had sent around 200 of them to NIMHANS for validation.

After the ICMR, on Monday, sent a circular to all states to return the test kits to the suppliers, Dr CN Manjunath, Director, Jayadeva Institute of Cardiovascular Sciences and Research, and nodal officer for lab testing in the state's COVID-19 task force, said, "We have cancelled the orders we placed to Guangzhou Wondfo Biotech and Zhuhai Livzon Diagnostics for one lakh rapid antibody test kits. Since the ICMR supplied us with 11,400 kits out of the 6.5 lakh kits it procured, we will be returning the kits to them."

Manjunath told said that the validation at NIMHANS revealed the kits to have only 47% sensitivity. Sensitivity is the ability of a test to identify the true-positives in a population, i.e., the actual number of people who've been infected with the disease. With the rapid antibody testing kits being shelved, the state's plan to randomly test high risk groups has taken a backseat. 

So far, the state has tested 43,791 samples. 

Karnataka now has 22 testing facilities -- 14 government and seven private labs. Many private labs have not tested any samples so far because of the lack of test kits (the state has made it clear that it will not provide test kits to private labs). So, getting an ICMR approval for testing has become a moot point.p

Agreeing to the setback the state's plans of ramping up testing has taken, Manjunath said, "It is true that RT-PCR test kits are in shortage. Even Pune's Mylabs had a shortage in supplying test kits. But we are relying on institutes like Kidwai, Narayana Health and Biocon's Syngene that have received approval for testing. They're big institutes and we hope that they will test a large number of samples."

On reports that the Centre has RT-PCR test kits that will last for only a week, he said, "We have test kits that will last for eight to 10 days. We have ordered for more. We are hoping to receive them before the current kits run out."

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