Thiruvananthapuram, July 28: From its name its idea and nature are evident. Halal Fayidah, an interest-free cooperative bank launched in Kerala’s Kannur districtthis Monday, is said to have been modeled on the lines of Islamic banking and finance.
According a news report in Scroll.in, the bank will become fully operational in September this year by raising a capital of Rs five crore through the sale of shares. The sale of shares began on Monday.
“The bank will invest only in Halal business ventures,” M Shajar, the chief promoter of the bank, was quoted as saying. “At present, we are planning to invest in meat processing units, construction and contracting businesses,” he informed.
According to Shajar, the profit from the investments will be shared among shareholders and customers of the bank. After a few years of profit, the bank will start offering interest-free loans.
An important feature of the bank is that it is not exclusive for Muslims, rather it is open to all irrespective of religions.
The cooperative bank was scheduled to open last year but was deferred in the wake of the sudden demonetization of high currency notes.