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 8,2025

Mangaluru: Air India Express (AIE) has postponed its much-anticipated direct flight service between Mangaluru International Airport (MIA) and Singapore, citing low bookings. Passengers who had booked tickets for the inaugural flight scheduled for January 21 and subsequent dates have been notified of the cancellation through email.

In its email, AIE assured passengers of alternative travel arrangements, including connecting flight options between MIA and Singapore. However, the decision to delay the direct service has left travelers and travel agents disappointed.

An AIE official attributed the postponement to operational challenges but clarified that the airline has not abandoned plans for the route. “We are committed to starting the service, but there is no immediate confirmation on the new launch date,” the official stated. He further explained that sustaining a route requires consistent demand, and seasonal travel alone is insufficient to justify operations.

Another AIE representative admitted that the number of bookings for the inaugural flight was below expectations but declined to disclose specific figures.

Rajesh H Acharya, director of HQ Connections Pte Ltd in Singapore and coordinator of the Singapore Tuluver community, expressed his disappointment. Acharya, who has been advocating for a direct flight between Mangaluru and Singapore since 2017, said, “After years of effort, we finally convinced the airline to start this service, but it has now been deferred.”

Taking to X (formerly Twitter), Acharya posted: "Did not expect such behavior from @AirIndiaX, now owned by @TataCompanies & @SIAirlines. If there are issues, travelers deserve to be informed well in advance. This decision needs investigation at the highest level."

The delay has raised questions among the travel community, with many hoping the airline will address these concerns and provide a clear timeline for the launch of the Mangaluru-Singapore direct flight.

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News Network
January 9,2025

Udupi: In a shocking case of cyber fraud, a 38-year-old woman from Karkala in Udupi district, has reportedly lost Rs 24 lakh to a digital arrest scam. The victim, Preema Sheril D'Souza, fell prey to a fraudulent scheme orchestrated through fake calls and threats.

According to the complaint filed, the incident unfolded on Tuesday when Preema received a call at 12:30 pm from an individual claiming to represent the Delhi Telecom Department. The caller alleged that another SIM card had been purchased using her Aadhaar number and was being used for illegal activities in Uttar Pradesh, leading to multiple cases being registered against her.

To add credibility to the scam, the caller arranged a video call where a person dressed as a police officer introduced himself as a CBI official. This individual instructed her to cooperate with the "investigation" and warned her not to disclose the matter to anyone. The scammer also issued threats, claiming that harm would come to her husband and child if she failed to comply.

Under duress, Preema was coerced into sharing her bank account details and transferring a staggering Rs 24 lakh to accounts specified by the fraudsters. She transferred Rs 14 lakh to an account in Federal Bank and Rs 10 lakh to an account in Yes Bank via RTGS from her Fixed Deposit account. The threats of an arrest warrant further pressured her into complying with the scammers' demands.

Upon realizing the fraud, she reported the incident to the authorities. A case has since been registered at the Karkala Rural Police Station, and investigations are underway.

This incident serves as a critical reminder to stay vigilant against such scams. Individuals are advised to verify the identity of callers and refrain from sharing sensitive information or transferring money without proper authentication. If you encounter similar fraudulent activities, report them immediately to the police or cybercrime cell.

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News Network
January 17,2025

jaishankar.jpg

Bengaluru: External Affairs Minister S Jaishankar asserted on Friday that the opening of "long-in-waiting" US consulate in Bengaluru was the "very important milestone" in the bilateral ties and urged the American authorities to ensure that the mission starts visa operations at the earliest.

"This will be my number one talking point with Secretary (of State Nominee Marco) Rubio when I go and see him. The sooner we get it done, the better it is," said Jaishankar.

The External Minister was in Bengaluru today to attend the "site dedication ceremony" of the fifth United States consulate in India, which will start operating in Bengaluru soon.

Delivering his speech, Eric Garcetti, US Ambassador to India, said the consulate in Bengaluru will not be offering visa services for the time being.

In his speech, Jaishankar pointed to statistics to nudge the US to get around to issuing visas from Bengaluru as early as possible.

"I was checking figures, and was very glad to see that last year, the RPO (Regional Passport Office) Bengaluru issued 8,83,000 passports. That's just for one year. Do the math, and you will see how important it is to ensure that travel is smooth," added Jaishankar.

He also added that there are three flights every week from here to San Francisco. "Hopefully, if Boeing and Airbus deliver, there'd be more. I think that's a legitimate expectation," said Jaishankar.

Jaishankar said a US consulate in Bengaluru has been "long-in-waiting".

"One, which I believe, Bengaluru legitimately deserved and expected," he added.

"I think Bengaluru has such an important place that it was for me an imperative that there is a permanent resident presence of American diplomats here," said Jaishankar.

He also said every time he had visited the city in the last five years, there was always somebody who would ask him, 'so, when is that consulate coming?'.

"It was from, really, I would say, the cross section of the society. It was from businessmen; it was from the tech world; it was from academics. It was even from people you would meet in a restaurant," added Jaishankar.

According to him, Prime Minister Narendra Modi in June 2023 had brought up the issue of opening a consulate in Bengaluru when he visited the US.

He also said India had promised to open a consulate in Los Angeles if the United States "get the Bengaluru consulate done". He said now, with the opening of the consulate, collaborations in defence and education would reach new heights.

"I think the formal opening of this consulate is one more sign that we are overcoming the hesitations of history. It is now within our grasp, within the realm of possibility, that we realise more fully the potential of India-US relations. And I think it is important that Bengaluru too realises its potential in the relationship," said Jaishankar.

In his address, US Ambassador Garcetti, who would be relinquishing his responsibility in India soon, said he was glad that getting a consulate up and running in Bengaluru would be his last task in India.

"You know, our relationship in India is not new. Our second consulate in the world was here in India. After the independence of a new America in 1776, we opened a consulate in Lyon, France, and then the second was in Kolkata, showing, back then, the importance of India to a new American nation," said Garcetti.

India, said Garcetti, is now the second largest mission of America anywhere in the world.

"It produces the second most visas, the most students we're breaking records every single year '“record employees, record visas, record students, record military exercises, record engagement from the seabed to space," added Garcetti.

Deputy Chief Minister D K Shivakumar, who was also present during the "site dedication ceremony" said the opening of the consulate in Bengaluru is a testament to the growing importance of Karnataka in the global stage.

"Nowadays, the world is looking at India through Bengaluru. We know there are a lot of hiccups there, as Bengaluru is not a well-planned city. But still the city has proved itself to be the safest city in the entire country for the global firms to have their headquarters," said Shivakumar.

Other dignitaries present for the ceremony include MP Tejasvi Surya, Karnataka's Minister for Large & Medium Industries and Infrastructure Development M B Patil, Minister for IT & BT Priyank Kharge.

Several entrepreneurs from the city, including Kiran Mazumdar-Shaw, executive chairperson and founder of Biocon Limited and Biocon Biologics Limited, had also attended the 'site dedication ceremony'.

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