By TwoCircles.net Staff Reporter
In Kerala, Islamic finance is a mission that has hitherto remain unaccomplished for several Muslim organisations and State Government. Practical impediments deterred them from smoothly running Islamic banking. But the Kannur district unit of CPI(M) has made a foray into the Sharia compliant finance and started raising investment. The financial enterprises will function as a cooperative institution in party’s largest stronghold in Kerala.
Named Halal Fayidah, the interest-free cooperative financial enterprise is aimed at mainly drawing Muslim investors who are hesitant to become part of banking due to a ban on interest by Islam. Besides, it will help the party strengthen its hold in the cooperative sector. Ranging from bank to beedi company, CPIM has added hundreds of cooperative institutions to its credit in Kannur district.
Shajar Mohammed, DYFI leader and chief promoter of Halal Fayidah, said they were getting non-Muslim investors too.
The party is mainly eyeing investments from expatriate businessmen in Kerala.
“We are getting a good response from the expatriate community and they are keen to support us,” Shajar said.
The idea was conceived by CPI(M) Kannur district secretary P Jayarajan. Leaders here are actively involved in the campaigns, meant to raise investment from various parts of the state.
In order to ensure smooth functioning of the bank, the party has sought support from experts who are now in Kerala after retiring from Islamic banks in GCC. Besides, according to Shajar, experts in the cooperative sector will also work for Halal Fayidah.
The members are trying to get an investment of Rs 5 crore in the initial stage. The amount will be invested in different business ventures except liquor and gambling which is strictly banned in Islam. Profit will be given to investors as per their contribution to the capital. Party functionaries expect the registration could be completed by August and the bank will go functional by September.