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
April 20,2020

Bengaluru, Apr 20: The cumulative positive cases of COVID-19 in Karnataka stand at 408, including 16 deaths and 112 people discharged.

Karnataka's Department of Health and Family Welfare in a media bulletin said: "As of 5 pm on April 20, cumulatively 408 COVID-19 positive cases have been confirmed in the state. It includes 16 deaths and 112 discharges."

Out of the remaining 280 cases, 278 COVID-19 positive patients including one pregnant woman in isolation at designated hospitals are stable, and two are in ICU, added Health and Family Welfare Department.

"18 new cases have been confirmed for COVID-19 in the State from Sunday 5 pm to Monday at 5 pm," added the department.

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News Network
February 6,2020

Thiruvananthapuram, Feb 6: The Kerala government on Wednesday said three foreign nationals were among the 2,528 people under observation in the state for the novel coronavirus infection and no new cases have been reported.

At least 93 people with minor symptoms of the virus have been lodged in isolation wards of various hospitals, state Health Minister KK Shailaja told reporters in Thiruvananthapuram.

India's three positive cases for the virus has been from the state's three districts of Thrissur, Alappuzha and Kasaragod.

All the three are students of China's Wuhan university, the epicentre of the virus.

"No new cases of coronavirus has been detected in the state today. At least 2,435 are under observation at home while 93 are in isolation wards at various hospital across the state," Mr Shailaja said.

The minister also said two foreigners have been quarantined in Ernakulam district and one foreign national at Thiruvananthapuram.

"The foreigner in Thiruvananthapuram has been kept at general hospital but not because he was showing symptoms but for observation as he travelled from China," an official said.

The health status of the three patients, who had tested positive for the virus, "remains satisfactory", the minister said.

After three cases were reported, the Left Democratic Front (LDF) government had declared the epidemic as a "state calamity" on Monday.

The health department has issued advisories to the education, tourism and the animal husbandry departments on taking precautions.

"The students, teachers, other staff members residing with families of Wuhan/China returnees who are already in home isolation should not attend classes...," an advisory issued to the education department read.

Rajan Khobragade, Principal Secretary (Health), said the health department has directed the District collectors to hold a meeting with the religious leaders of the district to create awareness during prayer meetings.

"We have directed district collectors to meet religious leaders and talk to them about the seriousness of the situation and create awareness among them and their followers on how to contain the spread of virus," the minister said.

Mr Shailaja also said the department got messages from some Kerala students studying in China, who returned to the state after the virus outbreak, that their Universities had asked them to return and attend classes.

"We have got some messages from the students that they were being recalled by the universities in China. We discussed the matter and it was decided that the centre will contact such universities and convey the message that it was not possible to send the students back to China until the epidemic was under control," the minister said.

Mr Shailaja also said even though there were no positive cases for the second consecutive day on Wednesday, the state needs to remain vigilant and reiterated the 28 days quarantine period for those returning from China.

Of the 2,528 people under observation, the maximum number is from Malappuram (383), followed by Ernakulam (333), Kozhikode (306) and Thrissur (241).

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News Network
April 7,2020

Kasaragod, Apr 7: The new COVID Hospital at the Kasaragod Medical College has started functioning, Chief Minister Pinarayi Vijayan said on Monday.

The new administrative block of Kasaragod Medical College was converted into a COVID-19 Hospital for providing better treatment facilities to the coronavirus patients, the Chief Minister said while addressing a press conference at the Government Secretariat.

Stating that the hospital was converted to a Corona Care Hospital in just four days, he said 200 beds and 10 ICU beds are now ready.

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