India's first Islamic bank to start in Kerala by 2010

The first Islamic bank in India with involvement of the Kerala government is likely to start operations in Kochi next year as the bank’s registration formalities are currently being fulfilled on a war footing, reported George Joseph in Business Standard. Kerala State Industrial Development Corporation (KSIDC), which is the designated agency for the formation of the bank, will have 11 % stake, which will be registered as a non-banking finance company (NBFC) in the beginning and later get transformed into a full-fledged Shari’ah-compliant bank.

The project proposes to raise an initial capital of Rs 500 crore from leading non-resident Indians (NRIs) and Indian business houses. According to sources close to the development, leading NRI businessmen such as Mohammed Ali, MA Yusuf Ali, CK Menon and other Kerala-based industrialists such as Azad Mooppan have shown keen interest in the venture.