Dawnay, Day to offer Islamic banking in India

London-based financial services and real estate major Dawnay, Day is planning to offer Islamic banking services in the country. Dawnay, Day is one of the leading players offering Islamic banking in Europe through its group company Dawney, Day Global.

"It is weird that no one offers Islamic banking in India, given that there is a sizable demand for such a service. We would leverage our global experience in the field and offer the same services here," said Peter Richard Klimt, chief executive, Dawney, Day International.

In India, the company has a joint venture called Dawney, Day AV, with Alok Vajpeyi, former president of DSP Merrill Lynch Asset Management.

DDAV plans to offer full range of financial services covering investment management, retail equity broking, corporate finance apart from real estate.

The firm has already got a license from Sebi for portfolio management services (PMS) and apart from managing domestic funds, the firm will also advice overseas investors.

In broking, the firm plans to cater to the retail segment and will rollout about 20 branches across the country in the first year. The company currently has on board about 27 relationship managers and will beef up the strength to 75 managers by the year-end. DDAV will also enter the mutual fund business.

"We have spotted the chief investment officer for the mutual funds business. The documentation is being done and we will file our papers with Sebi soon," said Vajpeyi.

In the real estate sector, DD intends to deploy around $50 million through its own funds. Combined, with debt it will have investible funds of around $150 million.

Eventually, the company would also provide real estate fund management in the country. "We have a policy of first investing our own money and understand the market before we handle other people's money," said Klimt.

Overall, DD manages about $5 billion of owned and managed funds. The combined networth of the group exceeds $450 million.