India’s first Islamic bank coming up in Kochi

headerState government -aided Islamic bank coming up in Kochi soon! A meeting will be held on September 12 at Kozhikode to discuss the steps to be taken to set up the first Islamic bank in India. The Kerala State Industrial Development Corporation (KSIDC) would have 11 percent stake in the proposed banking firm. It will be registered as a Non-Banking Finance Company (NBFC) in the beginning and later on will be transformed into 100% Shariah-compliant bank.

An initial capital of Rs 500 crore (Rs 5 billion) will be mobilized from leading non-resident Indians (NRIs) and Indian business houses. The bank will invest all its funds in wealth generating investment avenues and will distribute profit to its shareholders. Also the bank will set apart a social fund to provide interest-free loans to Gulf returnees to set up small-scale ventures. As of now, registration formalities will be completed by the end of this year.  This will be the first Islamic Bank in India which is set to be operational by mid 2010.

13 Comments

  • What is Islamic Banking?

    Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment of fees for the renting of money (Riba, usury) for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam, forbidden).

    For more info http://www.islamic-banking.com/what_is_ibanking.aspx

  • There are two major differences between Islamic Banking and Conventional Banking:

    1. Conventional banking practices are concerned with “elimination of
    risk” where as Islamic banks “bear the risk” when involve in any
    transaction.

    2. When Conventional banks involve in transaction with consumer they
    do not take the liability only get the benefit from consumer in form of
    interest whereas Islamic banks bear all the liability when involve in
    transaction with consumer. Getting out any benefit without bearing its
    liability is declared prohibited (Haram) in Islam.

    Mohammad Badar Hassan.

    Qatar Islamic Bank.

    Doha – Qatar

  • Jisha is it 100% sharia compliant bank?
    when it will start? I completed my B.com and now persuing MBA. I am very interested to work in islamic bank for that they are providing any course?

  • Salam…….

    i am looking for a home loan in india which is purely islamic…
    can any body help me if this facility is available for me…..
    my contact no…9891596912

  • At last state bank of india realised that islamic banking is the need of the day… it will help indian economy to grow faster..

  • I need a home loan in india which is purely islamic.Becaz i am not ready to pay any money to pay bank in the name of interest.
    Can any body help me if this facility is available for me…..
    my contact no…9721297194

  • i am looking for a home loan in india (chennai) which is purely islamic…can any body help me if this facility is available for me…..
    my contact no…9443691136