Saudi based Islamic bank enters India, first branch in Gujarat

executive@coastaldigest.com (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
May 8,2025

SofiaQuraishi.jpg

Belagavi: Colonel Sofia Qureshi who along with Wing Commander Vyomika Singh presented the details of ‘Operation Sindoor’ is being hailed as the daughter-in-law of Karnataka’s Belagavi.

Qureshi's husband Colonel Tajuddin Bagewadi is from Konnur town in Gokak taluk. He has been serving as a colonel in the Indian Army. They were married in 2015.

Qureshi is a native of Baroda in Gujarat, being married to Tajuddin has made her the daughter-in-law of Belagavi.

During a media meet at New Delhi on Wednesday, Qureshi had shared the details of the success of Operation Sindoor which was conducted in retaliation to the terror attack at Pahalgam in Kashmir.

Qureshi has also served in the UN peacekeeping force at Kangola. She has received great appreciation from General Officer Commanding for her work along the borders of Punjab and during the floods in North-East.

Presently Sofia has been posted at Jammu while her husband Colonel Tajuddin Bagewadi at Jhanshi.

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coastaldigest.com news network
April 30,2025

ashraflynching.jpg

Mangaluru, April 30: The victim of the tragic mob lynching in Mangaluru, 36-year-old Ashraf, was assaulted for nearly two hours before his body was abandoned at the crime scene, according to sources. The incident took place near a local cricket match venue in Kudupu on April 28. The exact motive behind the attack remains under investigation. Ashraf had suffered multiple severe internal injuries, which led to his death.

Ashraf, originally from Pulpalli village in Sultan Bathery taluk, Wayanad district, Kerala, had been living in Mangaluru for the past month as a manual labourer. 

He was known to have a mild mental disability, which had caused him to wander around different areas. Abdul Jabbar, Ashraf’s brother, confirmed that Ashraf was unmarried and had no affiliations with any organization. "We had been treating his health issues for years, but his condition never fully improved," Jabbar shared. 

Despite his mental health challenges, Ashraf frequently visited family in Kerala and maintained regular contact with his brother, who provided him with essentials, including a mobile phone.

The police had initially registered the incident as an unnatural death under suspicious circumstances. However, following the autopsy, the case was reclassified as mob lynching after it was confirmed that Ashraf died from internal injuries caused by strong blows, compounded by shock and the lack of medical intervention.

In connection with the incident, 20 men have been arrested so far, with 25 suspects believed to be involved. The first person to assault Ashraf is thought to be 26-year-old autorickshaw driver T Sachin from Kudupu. Police have invoked several sections of the Bharatiya Nyaya Sanhita (BNS) related to mob violence and culpable homicide. Investigations are ongoing, with authorities collecting witness statements, CCTV footage, and mobile tower data to identify additional suspects.

Abdul Jabbar has assured full cooperation with the police as they continue to investigate the horrific attack.

‘Attempt to cover up’

Meanwhile, the Dakshina Kannada district committee of CPI(M) has accused the Mangaluru City Police Commissionerate of deliberately attempting to cover up the mob lynching. The committee claims that the FIR (First Information Report) filed in this case serves as strong evidence of the police’s efforts to obscure the truth.

“The news of the incident reached the Vamanjoor Police Station within an hour of the incident. Five hours later, police arrived at the crime scene, where they found the brutalized body of the victim. By this time, the details of the incident were clear to the police, and the news had also reached Mangaluru Police Commissioner Anupam Agrawal,” it said.

CPI(M) district secretary Muneer Katipalla alleged that the police apparently tried to weaken and possibly cover up the case due to various factors. Ravindra Nayak, a prominent BJP leader, and Manjunath, both believed to be key figures in the local political circles, are reportedly connected to the attack. The incident drew national attention, and the police were reportedly concerned that the case would cause embarrassment if it became widely known.

As part of the cover-up, Manjunath, who is said to have played a pivotal role in the mob lynching, allegedly filed a report stating that the unidentified body had been found. Despite being fully aware of the details, the police issued a lookout notice, falsely claiming that the victim may have died from falling due to intoxication or a scuffle, with only superficial injuries on his body, said Mr. Katipalla, who believes this was an effort to exonerate the real culprits and avoid further embarrassment for the local authorities.

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News Network
May 10,2025

Mangaluru, May 10: A new chapter in Mangaluru’s infrastructure story unfolds on May 16, as Chief Minister Siddaramaiah arrives to inaugurate two transformative projects: the newly built Deputy Commissioner’s Office at Padil and a world-class indoor stadium at Urwa.

These developments signal a strong push toward better governance and enhanced urban amenities in the coastal city.

₹75 Crore DC Office

The new DC Office, spread across a modern campus at Padil, comes with a price tag of ₹75 crore. Initially budgeted at ₹55 crore, the project received an additional ₹20 crore under the Smart City Mission, aimed at integrating technology and convenience in public administration.

“This facility reflects our vision of a centralized, people-friendly government. With 23 departments under one roof, citizens can now access services more efficiently,” said District In-charge Minister Dinesh Gundu Rao.

The phased relocation of departments will begin on the day of inauguration and be completed over the next 2 to 3 weeks.

₹35 Crore Indoor Stadium Opens Doors

Also on the agenda is the grand opening of Mangaluru’s new indoor sports complex in Urwa, built for ₹35 crore. This ultra-modern facility is equipped to host national-level indoor events and will offer quality training infrastructure for emerging sports talent in the region.

Initiated during Siddaramaiah’s previous term, both the stadium and DC Office projects are now ready for public use and are expected to create lasting impact.

“These projects are not just buildings. They are investments in governance, youth, and the future of Mangaluru,” said Rao.

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