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
December 12,2024

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Angry BJP lawmakers stormed Assembly Speaker U T Khader’s chambers at the Suvarna Vidhana Soudha, escalating tensions after the ruling Congress turned the tables on the saffron party over the Panchamasali Lingayat community’s reservation issue.

The friction began when Congress MLA Vijayanand Kashappanavar, a Panchamasali Lingayat, was allowed to criticise the Basavaraj Bommai-led BJP government’s controversial decision to scrap the 4 per cent Muslim quota, reallocating it equally to Lingayats and Vokkaligas. Kashappanavar slammed the BJP’s move, accusing it of being a mere election gimmick.

“The previous BJP government created two new reservation categories, 2C for Vokkaligas and 2D for Lingayats, just before the 2023 Assembly elections,” Kashappanavar said. “When challenged in the Supreme Court, the BJP government admitted it would not implement the decision. They announced it for votes but backtracked in court, misleading Panchamasali seer Basava Jaya Mrityunjaya Swami.”

Adding fuel to the fire, Kashappanavar alleged that RSS members had incited violence during a protest for enhanced Panchamasali Lingayat reservation. This claim enraged BJP lawmakers, who demanded the comment be expunged. However, Speaker Khader permitted Revenue Minister Krishna Byre Gowda to read aloud the BJP government’s affidavit to the Supreme Court.

“If the Panchamasali Lingayat community has faced injustice, it is because of the BJP,” Gowda declared, sparking further protests from the opposition. BJP leaders accused Khader of being “one-sided” and disregarding a point of order raised by BJP MLA V Sunil Kumar.

When Khader adjourned the session for lunch, the confrontation boiled over. Opposition Leader R Ashoka, BJP state president B Y Vijayendra, MLAs Dr C N Ashwath Narayan, Sunil Kumar, and others barged into Khader’s chambers. Chaos ensued as shouting and hollering echoed through the halls, prompting marshalls to intervene.

“The Speaker was warned that if he continued behaving this way, we would boycott the session,” Narayan stated afterward.

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Media Release
December 23,2024

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The Shepherds’ International Academy celebrated its Annual Day on 18/12/2024 at Town Hall with great enthusiasm and spirit. The theme, Essence of Life, focused on fostering moral values, life skills, and holistic development among students, aiming to instill in them the values of kindness, responsibility, and gratitude.

The Chief Guest, Dr. Santosh Soans, a renowned pediatrician and former President of the Indian Academy of Pediatrics, was welcomed, along with other dignitaries, by the Head Boy Maaz and Head Girl Amal of the school.

The program commenced with a warm welcome by the Master of Ceremonies, Ms. Swathi Arshekar, followed by the Principal, Ms. Lubna Banu, addressing the gathering.

A special tribute was paid to the late visionary leader, Mr. Ahmed AK, and advisor, Mr. S.M. Basheer, whose guiding principles continue to inspire the school. Quoting the leader’s words, the Chief Guest, Dr. Soans, said, “We took so much from society; now it’s time to give it back to society.” He emphasized how these words formed the foundation of the school and encouraged everyone to carry forward this vision of service and responsibility.

The Chairman, Ar. Mohammed Nissar, shared his thoughts on the late leader’s enduring legacy, reaffirming the institution’s mission of holistic education that integrates academic excellence with strong ethical values.

The cultural program was a vibrant celebration of the theme Essence of Life, showcasing various values through engaging and meaningful performances.

The theme Essence of Life was designed to inspire students and the audience to reflect on the fundamental principles that give life its true meaning. It emphasized the significance of living a balanced and purposeful life, grounded in strong moral and ethical values. Key aspects of the theme included nurturing family bonds, expressing gratitude, conserving resources, and practicing mindfulness. The school’s aim was to create a foundation of values that would shape students into compassionate, responsible, and well-rounded individuals, ready to make a positive impact on the world.

A welcome note was given by Zahaa, followed by The MCs—Areen Ahmed Shareef, Sharah Syed, Mohammed Ibrahim, Khatija Aleena, Tisha, and Ahsan Hassan T—set the stage by entering with a seed of goodness, a symbolic act where a fruit was added to a tree after each performance, representing the values instilled through the acts.

The cultural program began with “We Are All Amazing” A lively action song celebrating self-worth and individuality by Montessori 1.  Also a skit, celebrating the love, unity, and strength of family bonds, titled Humara Pyaara Parivar. “TED Talk” A thought-provoking talk by a student of Mont 2 Iqra Abdulla on Being Bored is healthy. “Skit on the Right Path” A dramatic performance highlighting the significance of making ethical and moral decisions. “Kindness act” A heartfelt gratitude to the Helping ladies of school. 

The Annual Day celebration was a true reflection of The Shepherds’ International Academy’s mission to nurture well-rounded, value-driven individuals. The theme Essence of Life was seamlessly integrated into every performance, leaving a lasting impression on the audience about the importance of living a life guided by values, responsibility, and service.

The event was a resounding success, showcasing the creativity and talent of students while delivering a strong message about moral values and community service.

The Shepherds’ International Academy remains committed to fostering learners who excel academically and ethically, making a positive impact on the world.

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News Network
December 10,2024

Mangaluru City Corporation Mayor Manoj Kumar issued a stern directive to GAIL Gas Limited, instructing them to immediately restore roads damaged during their ongoing gas pipeline project.

The issue, which has left motorists and residents frustrated, dominated discussions at a special meeting chaired by the mayor on Monday. Corporators unanimously criticized the delay in road restoration, with Opposition Leader Anil Kumar warning that the project should be halted if the roads remain neglected.

Corporator Naveen D’Souza pointed out that permissions granted for the pipeline project were limited to two years, yet the roadwork disruption has dragged on for over five years. He demanded criminal charges and penalties against responsible officials for the prolonged inconvenience.

Adding to the outcry, Corporator Sangeetha Nayak called for MCC engineers to inspect the affected areas, while Corporator Varun Chowta flagged a severe lack of coordination between MCC, GAIL, and Jalasiri 24x7 officials.

The mayor directed GAIL Gas Limited to submit a report within two days addressing the complaints raised. He also insisted on a detailed update on the project’s implementation to be presented at the next review meeting, aiming for a resolution to the ongoing chaos.

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