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 29,2020

Bengaluru, Mar 29: There was no shortage of masks and testing kits for detecting coronavirus cases in Karnataka and the government would import them if a need arose, Chief Minister B S Yediyurappa on Sunday said.

Apprising leaders of political parties on measures taken by his government to combat spread of coronavirus, he also told an all-party meeting that the government has decided to provide life insurance cover to police and civil workers and has taken extra precautions to maintain supply of food grains.

"There is no shortage of testing kits, medicines and masks. If there is need, we will import more... We will distribute testing kits to all the district and Taluk hospitals," he was quoted as saying in a government release.

The state has so far reported 76 COVID-19 cases including three deaths and five discharges.

At the meeting held in the Vidhana Soudha here, former chief minister and senior Congress leader Siddaramaiah said there were shortcomings in the screening of passengers coming from abroad and stressed on the need to maintain supply of essentials.

Yediyurappa said supply of foodgrains would be made through Public Distribution System and the government had taken extra precautions to avoiod any difficulties.

He told the leaders that there was no restriction on agriculture activities in the state.

"I have been regularly holding meetings since March 13 regarding the measures taken to contain the transmission of COVID-19," the chief minister said.

Health Minister B Sriramulu, Medical Education Minister Dr K Sudhakar, IT-BT Minister C N Aswath Narayan, Deputy Chief Minister Laxman Savadi, Siddaramaiah, JD(S) MLAs H D Revanna, D K Shivakumar and former speaker K R Ramesh Kumar attended the meeting.

Yediyurappa said a task force comprising of ministers and officials has been formed to oversee the implementation of the government orders in view of the 21-day lockdown.

He highlighted the prevailing situation across the globe saying normal life has been paralysed everywhere.

The chief minister also brifed the leaders about the number of clinics all over the state, availability of medicines and protection gear for the doctors and in quarantine rooms in the state.

Flagging concerns over screening process, Siddaramaiah said around 4,500 people were yet to be tracked, which need to be taken up on a warfooting.

"The government is saying that we have not reached the third stage but in Nanjangud, a person contracted the disease though he does not have any travel history. This must be probed," he said.

The former former chief minister asked the government to make sure that the free distribution of food grains to weaker sections take place without any difficulty from April 1, as announced by the Central government.

He objected to police 'excesses' while enforcing lockdown.

Siddaramaiah also asked government to bring the police personnel under special insurance cover.

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
June 2,2020

Bengaluru, Jun 2: Karnataka recorded a biggest single day spike of 388 COVID-19 cases, with returnees from neighboring Maharashtra continuing to add to the state's tally, taking the total number of infections in the state to 3,796, the health department said on Tuesday.

With 367 out of 388 new cases being returnees from other states, mostly from neighboring Maharashtra (357), the Karnataka government said it was mulling over increasing institutional quarantine for those returning from the western state. Meanwhile, achieving a milestone in the battle against the coronavirus,the Karnataka Institute of Medical Sciences at Hubballi has successfully treated a COVID-19 patient through plasma therapy.

"Maharashtra (returnees) is a major worry for us, already 15,000-20,000 people have come from Maharashtra, still 2000 odd people may come to each district, as we have allowed so many people already, we have decided to allow them also, Revenue Minister R Ahoka said.

Speaking to reporters here, he said ".....cases coming from Bombay and Pune are turning out to be positive, we have to take extra caution, seven days quarantine (institutional) is of no use, we want to increase it specifically for those returning from Maharashtra.

We will take a decision soon and issue order." Chief Minister B S Yediyurappa earlier directed district authorities including the Deputy Commissioners and Superintendents of Police to camp at taluk centres and work towards curbing the spread of COVID-19. Pointing out that COVID-19 cases were increasing in the state because of returnees from Maharashtra, he asked officials to take all necessary measures to check it, his office said in a release. The previous biggest single-day spike was recorded on May 31 with 299 cases. As of June 2 evening, cumulatively 3,796 COVID-19 positive cases have been confirmed in the state, which includes 52 deaths and 1,403 discharges, the health department said in its bulletin.

It said out of 2,339 active cases, 2,325 patients are in isolation at designated hospitals and are stable, while 14 are in ICU.

According to the bulletin,75 patients have been discharged today.

Medical Education Minister K Sudhakar said Karnataka Institute of Medical Sciences in Hubballi has successfully treated a COVID-19 patient through Plasma Therapy.

"Karnataka achieves yet another milestone in battle against #COVID19.

KIMS Hubli has successfully treated a Covid19 patient through Plasma Therapy & is the first institute in the state to accomplish this. Congrats to KIMS doctors & staff for this feat!" the Minister tweeted.

Among the districts where the new cases were reported, Udupi accounted for 150 cases, followed by Kalaburagi 100, Belagavi 51, Raichur 16, Bengaluru urban 12, Bidar 10, nine each from Bagalkote and Hassan, Davangere seven, Yadgiri five, four each from Mandya and Vijayapura, Bengaluru rural three, two each from Chikkaballapura, Dharwad and Tumakuru, and one each from Kolar and Haveri.

Udupi district tops the list of positive cases with 410 infections, followed by Kalaburagi 405 and Bengaluru urban 397.

Among discharges too Bengaluru urban tops the list with 237 discharges, followed by Kalaburagi 128 and Davangere 121.

A total of 3,19,628 samples have been tested so far, out of which 14,812 were tested on Tuesday alone.

According to the bulletin, 3,10,967 samples have reported as negative, 13,915 on Tuesday alone.

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.
coastaldigest.com news network
May 26,2020

Bengaluru, May 26: Karnataka chief minister BS Yediyurappa has been urged to cancel the proposed SSLC examinations in Karnataka and allow “mass-pass” for every student in the wake of covid-19 crisis. A group of intellectuals and educationists have put forth this demand.

In the letter released by educationist VP Niranjan Aradhya, said that they were listing the scientific reasons to the CM for cancellation of exams which are slated to be held from June 25 to July 4th.

In the letter, the intellectuals have elucidated a number of reasons for cancelling the upcoming exams. “There are close to 8.5 lakh students and 2.5 lakh staff involved. If we include parents who would drop their kids at the exam centre, around 30 lakh people will be involved in the process, making it a risky affair. Though the government has said that it will separate the students with fever or other ailments, will students admit to having fever? What if they consume paracetamol and come to write exams?” asks the letter. 

Added to this, the question papers have to be sent from the district and taluk centres and there may be chances of transmission.

“Even if we conduct exams, then what about the students who have failed? Every year, around 2.5 lakh students fail in the exam. Will the government conduct the supplementary exams again? The whole process of conducting exams comes at a huge cost of Rs 20 cr to Rs 25 crore. Hence, we are suggesting that the government cancels the exams and pass the entire group of student en masse,” said the letter.

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.