Is VersaBank (VBNK) halal?
VersaBank (TSX: VBNK) is a federally licensed Schedule I bank whose core business is interest-based commercial lending and deposit-taking — the business gate fails at step one. Net interest income was about 94.8% of revenue in Q3 fiscal 2026: FAIL.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — conventional banking fails at step one
VersaBank, headquartered in London, Ontario, is a federally licensed Schedule I Canadian bank (also federally chartered in the US) operating a branchless business-to-business digital banking model. Its core business is interest-based commercial lending — chiefly its Receivable Purchase Program / Structured Receivable Program (RPP/SRP), which purchases receivables of point-of-sale finance companies in Canada and the US — funded by electronically sourced deposits through financial intermediary partners. Minority segments are DRTC (cybersecurity services) and Digital Meteor (digital-assets IP). Interest-based banking is the overwhelmingly dominant business, so the business gate fails at step one.
Gate two: the ratios — moot for a bank
For a bank, the debt screen is structurally moot: customer deposits are the funding base (at July 31, 2026, deposits were C$5,909.9 million plus subordinated notes of C$103.8 million, against a market cap of about C$1.03 billion). What matters is the interest intensity: in Q3 fiscal 2026 (ended July 31, 2026), net interest income of C$36.8 million was about 94.8% of total revenue of C$38.8 million — virtually the entire business is interest-based.
What other screeners say
No coverage pages for VersaBank (VBNK) were found on Zoya, Musaffa, or ShariaPortfolio in targeted searches.
The bottom line
This screener gives VersaBank (TSX: VBNK) a FAIL. It is a conventional bank — interest-based lending and deposit-taking fail the business gate at step one. Snapshot dated September 29, 2026; re-checked quarterly after earnings.
Sources
Frequently asked questions
Is VersaBank halal?
This screener gives it a FAIL. VersaBank (TSX: VBNK) is a federally licensed Schedule I bank whose core business is interest-based commercial lending and deposit-taking — the business gate fails at step one. Net interest income was about 94.8% of revenue in Q3 fiscal 2026. Consult a qualified scholar.
Why does VersaBank fail the Shariah screen?
The business gate fails: VersaBank is a conventional bank. Its core business is interest-based commercial lending — chiefly its Receivable Purchase Program / Structured Receivable Program (RPP/SRP), which purchases receivables of point-of-sale finance companies in Canada and the US — funded by electronically sourced deposits. In Q3 fiscal 2026 (ended July 31, 2026), net interest income of C$36.8 million was about 94.8% of total revenue of C$38.8 million.
What are VersaBank's business and financial figures?
VersaBank, headquartered in London, Ontario, is a federally licensed Schedule I Canadian bank (also federally chartered in the US) running a branchless business-to-business digital banking model. Q3 fiscal 2026: total revenue C$38.8 million, of which Digital Banking Canada was C$27.6 million and Digital Banking USA C$9.3 million, vs minority cybersecurity (DRTC) and digital-assets IP (Digital Meteor) units. At July 31, 2026: customer deposits C$5,909.9 million and subordinated notes C$103.8 million; market cap about C$1.03 billion (September 29, 2026). For a bank the debt screen is structurally moot — the FAIL is at the business gate.
What does VersaBank do?
VersaBank, headquartered in London, Ontario, is a federally licensed Schedule I Canadian bank (also federally chartered in the US) operating a branchless business-to-business digital banking model. Its core business is interest-based commercial lending — chiefly its Receivable Purchase Program / Structured Receivable Program (RPP/SRP) — and deposit-taking through financial intermediary partners. Minority segments are DRTC (cybersecurity services) and Digital Meteor (digital-assets IP). Interest-based banking is the overwhelmingly dominant business, so the business gate fails.
What do Zoya, Musaffa, and ShariaPortfolio say about VBNK?
No coverage pages for VersaBank (VBNK) were found on Zoya, Musaffa, or ShariaPortfolio in targeted searches.