Is what the bank does—giving a loan of one million (currency unit) on condition that the borrower repays two million after one year, while keeping the extra one million as a deposit with it—considered usury (riba)?

This loan is usury, forbidden by the consensus of Muslims, because the purpose of a loan is to show kindness, and the Messenger of Allah, peace and blessings be upon him, said: "Every loan that brings a benefit is usury." Only the borrowed amount must be repaid, without any increase, based on the Almighty's saying: "And give up what remains of usury, if you are believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged."