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
October 29,2024

kasaragod.jpg

Kasargod, Oct 29: At least 154 people have been injured in a fireworks accident at the Anjootambalam Veererkavu Temple in Kerala's Kasaragod district. Among the injured, eight individuals are reported to be in serious condition, with one person in extremely critical condition. The tragic incident occurred just after midnight on Monday during the traditional Theyyam festival, which drew over 1,500 attendees to the temple.

Eyewitnesses stated that the accident was triggered when sparks from firecrackers ignited additional fireworks stored in a nearby room. As panic ensued, a stampede followed, leading to further injuries. Local authorities confirmed that 97 individuals have been admitted to various hospitals in Kasargod, Kozhikode, Kannur, and Mangalore for treatment.

A young girl present during the incident recounted, "The accident took place after sparks from crackers fell into a room where other fireworks were stored. Soon, we were all running away, and I fell down and got injured. My sister escaped unhurt."

Safety Protocols Ignored: Police Detain Temple Officials

Authorities have attributed the cause of the fire to negligence on the part of the temple officials. The police have taken two members of the temple committee into custody for questioning. According to local officials, the temple had stored low-intensity fireworks worth around Rs 25,000 for the festival, which concludes on Tuesday night.

Kasargod district Superintendent of Police (SP) D. Shilpa emphasized that the temple authorities failed to comply with safety protocols, noting that they did not secure the mandatory licenses required for the bursting of firecrackers. District Collector K. Inbasekar confirmed that a thorough investigation is underway, with forensic samples collected from the accident site.

Local CPI(M) MLA M. Rajagopal expressed his condolences, calling the incident "very unfortunate" and reinforcing that safety measures must be strictly adhered to during such celebrations. Kasargod MP Rajmohan Unnithan echoed these sentiments, pointing out the serious lapses on the part of officials responsible for ensuring safety during the festival.

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News Network
October 29,2024

Bengaluru: Following allegations by a section of farmers from Vijayapura district that their lands were marked as Waqf properties, Karnataka Chief Minister Sidddaramaiah on Tuesday said none of them will be evicted, and notices issued to them will be withdrawn.

"No farmer will be evicted from their land. Yesterday Revenue Minister (Krishna Byre Gowda), M B Patil (Industries and Vijayapura district in-charge Minister) and Waqf Minister Zameer Ahmed Khan have jointly said that no farmer from Vijayapura will be evicted from their land," Siddaramaiah said.

Speaking to reporters here, he said in case notices have been issued to farmers, they will be withdrawn.

Responding to a question that similar notices have been issued to farmers in Yadgir and Dharwad districts too, the CM said: "I will ask the Revenue Minister to look into it, nowhere farmers will be evicted."

Seeking to clarify "confusion" over 1,200 acres in Honavada of Tikota taluk being marked as Waqf property, M B Patil had recently said it was due to an “error” in the gazette notification.

He also had said only 11 acres out of the 1,200 acres are Waqf properties, and a task force headed by the Deputy Commissioner will be formed to resolve the issues.

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News Network
October 31,2024

Udupi: Falling prey to a sophisticated a “digital arrest” scam, Prameela (39) found herself defrauded of a staggering ₹11,87,463. The plot, orchestrated through deceptive tactics, left her financially devastated.

On October 25, Prameela received a call from an unknown number claiming a parcel, allegedly sent by one Wang Ming Zi, was flagged due to containing suspicious items: 5 kg of clothes, 8 ICICI credit cards, and 700 grams of MDMA. Adding to the urgency, the caller asserted that an FIR had already been filed against her.

The caller then transferred Prameela to a supposed representative of the 'Bombay Cyber Crime Branch,' who introduced himself as Manish Kumar, claiming to be a senior executive at DTDC Mumbai. Manish directed her to connect via Skype video call, asking her to download the app and search for the ID [email protected].

Once on the call, Prameela was requested to provide her Aadhaar card details, which she complied with. She soon received what appeared to be a formal arrest order listing her name, address, and Aadhaar information. Under pressure, Prameela disclosed her bank account details and balance to the caller. Exploiting this trust, the scammer then transferred ₹11,87,463 from her account.

Following the incident, Prameela lodged a complaint with the Shirva police, who have since registered a case under sections 316(2), 318(4), 351(2) of the BNS, and 66(C), 66(D) of the IT Act. The authorities are now investigating this alarming case of digital fraud.

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