Islamic Finance and Banking in Indian context

The book aims at examining the Islamic Finance and Banking scenario in Indian context. An attempt has been made to present an overview of extent of Islamic baking practices and the awareness and perception about Islamic Banking and Islamic Micro-finance in India. The respondents perceived that the spirit of ¿social welfare¿ in Islamic banking would be a motivating factor for them to choose Islamic banking if this comes into existence.As far as awareness on Islamic finance are concerned, study observes that people somewhat know about Islamic finance and feel that it would prove as an expeditious method for economic growth.The study was conducted to examine the risk and return of the S&P CNX Nifty Shariah and S&P CNX Nifty throughout the period from January 2007 to December 2011.The study found that performance of both the indices were under performing relative to risk-free rate of return as per risk-adjusted return, despite of which Nifty Shariah turned out to be less risky than Nifty index. Shariah compliant investment can serve better to those investors who have a cautious outlook and want to take less risk on investment so that their financial needs would be fulfilled.