“The bank is optimistic of working with the Indian government for the uplift of Muslims and the people of India,” Khan said at a press conference. Khan, who held a series of meetings with IDB officials including its chief Ahmad Muhammad Ali, said they explored ways to cooperate in different fields.

Khan and IDB officials agreed to cooperate primarily in three areas. "We discussed Islamic banking in India, thousands of hectares of Waqf properties and lastly educational infrastructure," Khan said.

In fostering Islamic banking, IDB is hoping to hold a conference in India at the earliest, said Consul General Faiz Ahmad Kidwai, who was also present at the press conference.

"There’s skepticism about the Islamic banking system in India and that needs to be tackled through dissemination of information and I believe the proposed conference will help clear misconceptions," Khan weighed in.

The bank is keen to initiate Islamic banking through "Tabung Haji" system — Malaysia's pioneering effort in Haj management. If India adopts this system, the bank is ready to provide all assistance. Khan said the bank is willing to finance not only Wakf properties in India but also to develop seven Rubaats (Haj shelters) in Makkah for pilgrims' accommodation.

"The proposal to construct multistoried buildings in place of seven Rubaats is worth considering. I will discuss this proposal with the caretakers of these Rubaats in India," Khan said, adding, "We have 200,000 hectares of Wakf land in India and IDB is willing to help develop it.”

On education, Khan stressed India is a knowledge destination of the 21st century and offers wide-ranging educational facilities. “This will get a further boost with the opening of around 500 new universities in next 10 years,” he said.

The bank is hoping to tap this potentially-viable sector. It already provides $43 million worth of scholarships through its assistance program to 262 institutions.

"We explored the possibilities of jointly promoting a virtual university to cater to the growing needs of thousands of people in both countries."

The cooperation, Khan said, will be on two levels — primary and secondary. On primary level, IDB wants to fund existing madrassas, which will be linked to the National Council of Open Schools, to make them competitive, and on secondary level, it wants to promote a virtual university system.