What is the ruling on an Islamic bank that deals with interest in some of its projects?

The ruling on any bank, whether it is considered Islamic or non-Islamic, depends on its adherence to Sharia (definition) principles in its transactions, not merely on its name. Some banks that call themselves Islamic may include prohibited dealings or forms of Riba (usury) in their transactions, and this does not change the fact that they are usurious.

The consideration is based on facts, not words, and a Muslim must know the reality of a bank's transactions before passing judgment on it. A distinction should be made between prohibited usurious interest and legitimate profits from Mudarabah (definition) (profit-sharing) or Murabaha (cost-plus financing). One should ask people of knowledge about the ruling on a transaction before engaging in it.