India rules out Islamic banking

The Indian government has ruled out the introduction of Islamic banking in the emerging Asian economy but has not dismissed the option for overseas branches and subsidiaries of Indian banks.

Minister of state for finance, PK Bansal, said the Reserve Bank of India (RBI) is considering requirements for overseas branches and subsidiaries to offer Islamic banking products in order to compete in the emerging field.

Meanwhile, five public sector banks in India have posed lower post-tax profit over the third quarter due to an increase in operating expenses, including staff costs, and a decline in profit earned in securities trading.

These banks are Central Bank of India, Corporation Bank, United Bank of India, State Bank of India and State Bank of Patiala.

Mr Bansal said no bank has raised capital through hybrid bonds, even though RBI issued guidelines on the subject recently, NewKerala reports.

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