Islamic finance gives universities a bonus:
With global finance on
its knees, this summer's business graduates face an even trickier
jobs market than most. But there is one area of banking still
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The Kerala government will set up an Islamic bank in the state,
Finance Minister Thomas Isaac told the assembly Wednesday.
The share capital
of the proposed bank has been fixed at Rs.1,000 crore, Isaac said,
adding that an advisory committee would be set up shortly to work
out the details.
Malayalees and Kerala-based businessmen like E.M. Najeeb are
involved in the project," he said.
Later, Najeeb told
IANS the core committee that has been set up has held three meetings
following a feasibility study conducted by a consultant.
"The study has
found that a bank under the Sharia rules of Islamic banking is
feasible and viable here. By next year this would be a reality,"
said Najeeb, who is part of the core committee.
"The company would
be registered by next month. Once the company is formed, we will
move for clearance from the Reserve Bank of India," he added.
"The bank will not
receive or pay interest and have Sharia compliant products. The
profits made out of investments will be distributed among
shareholders. A Sharia board will decide on what sort of investments
will be made."
the second largest community in Kerala, accounting for close to 24
percent of the 3.2-crore population.
According to a
study done by the Centre for Development Studies, 48 percent of 18.5
lakh non-resident Malayalees are Muslims.
Of the total
remittances of Rs.24,525 crore (about $49 million) to the state in
2007, Muslims remitted Rs.12,158 crore (Rs.24.3 million), the study