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
November 3,2024

Mangaluru, Nov 3: Mangaluru police have apprehended two individuals connected to a major online purchasing scam, seizing assets worth ₹11.45 lakh. The suspects, Raj Kumar Meena (23) and Subhash Gurjar (27), hail from Rajasthan and are accused of fraudulently acquiring high-value electronics through deceptive orders.

Background of the Case

According to City Police Commissioner Anupam Agrawal, the case began with a fraudulent order placed through an international e-commerce company. Using a false identity under the name "Amrith," the suspects ordered two high-end Sony cameras along with ten other items, directing the delivery to an address near the KSRTC bus stand in Mangaluru on September 21 at 4 p.m.

The Scam Unfolds

During delivery, Raj Kumar Meena received the items by providing a delivery OTP, while Subhash Gurjar reportedly distracted the delivery personnel. The suspects then executed a sticker-swapping tactic, replacing original Sony camera box labels with stickers from other items in the order to mislead the delivery team. Meena also intentionally provided an incorrect OTP, causing further confusion. The duo told the delivery agent they would collect the cameras the next day, then sent him away before cancelling the camera order.

Detection and Arrest

The unusual activity raised suspicions, and upon inspection, Amazon’s delivery partner, Mahindra Logistics, discovered the sticker swap and alerted Amazon. Subsequent investigations revealed that the suspects had taken the genuine cameras and left behind tampered boxes.

Upon deeper investigation, CCTV footage and other tracking methods led the police to identify and pursue the suspects as they attempted to flee the city. Meena was initially detained by the Salem police on October 4 for a similar scam and subsequently transferred to Urwa police custody in Mangaluru. Following his 13-day custody beginning on October 18, which included a thorough probe in both Mangaluru and Jaipur, Subhash Gurjar was apprehended on October 21.

Broader Criminal Network

The arrested individuals are allegedly part of a larger network, with involvement in at least 12 other high-profile cases. Their targets included high-end cameras, iPhones, and laptops, each costing over ₹10 lakh, with cases registered across states like Assam, Odisha, Maharashtra, Rajasthan, Telangana, Uttar Pradesh, Tamil Nadu, and Kerala.

The seized assets, valued at ₹11.45 lakh, have been presented to the court as evidence, and investigations continue as authorities seek to dismantle this organized fraud operation.

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News Network
November 3,2024

Mangaluru, Nov 3: A quiet morning turned perilous for a farmer in Elathur, near Kinnigoli on the outskirts of the city, as a leopard attacked him while he was cutting grass. 

Ligori, a resident of Kalkare, was startled by the sudden assault and suffered injuries to his face but managed to escape and reach safety. He was promptly taken to the hospital for medical care.

Residents in Elathur have been on edge for over a week following reports of leopard sightings in the area. Today’s incident has heightened concerns among the local farming community, who now fear for their safety.

With a significant population of farmers in the region, villagers are demanding immediate action from the forest department to capture the leopard and ensure their safety. 

The community awaits a response, hoping for swift intervention to prevent further attacks.

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News Network
November 3,2024

Mangaluru: Dakshina Kannada MP Capt. Brijesh Chowta has called for a Central Bureau of Investigation (CBI) inquiry into the alleged embezzlement of Waqf properties. This demand follows findings from the Anwar Manippady committee's report, which reveals that while 54,000 acres of land are registered with the Waqf Board, approximately 29,000 acres have been misappropriated.

Capt. Chowta emphasized the need for a thorough investigation, stating, “A comprehensive probe should be conducted based on this report. Those who have illegally encroached on these properties must be held accountable.”

He challenged the Congress party, suggesting that if they genuinely care for the Muslim community and underprivileged women, their members should actively participate in the Joint Parliamentary Committee discussing the Waqf (Amendment) Bill 2024. This participation is essential to ensure that Waqf properties are used effectively for community welfare.

The MP criticized the notices served to farmers in Honvada village, Vijayapura, which stated that nearly 1,200 acres of their ancestral land was being reassigned to the Waqf Board. He expressed that this issue arose while the NDA government, led by Prime Minister Narendra Modi, is working on amendments to the Waqf Act. He accused the Congress-led state government, particularly Minister Zameer Ahmed Khan, of trying to enforce outdated 50-year-old notifications about Waqf properties. After the farmers raised concerns, Minister M. B. Patil clarified that the confusion was due to an error in the gazette.

Chowta alleged that Congress members in the Joint Parliamentary Committee are obstructing proceedings and causing disruptions. He expressed suspicion that Chief Minister Siddaramaiah might have instructed Minister Zameer Ahmed Khan to implement these outdated notifications regarding Waqf properties. As a result, he demanded the Minister's resignation.

He accused the Congress party of exploiting Muslim voters for the past 75 years without making substantial efforts for their welfare. Furthermore, he highlighted that the BJP is launching a campaign against land jihad, pointing out that the Waqf Board controls one of the largest land banks after the Defence and Railways sectors. Finally, he urged citizens to check the revenue records (RTC) of their land ownership to verify its status.

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