Is Merchants Bancorp (Indiana) MBIN stock halal to invest in?

No, as of August 2026, Merchants Bancorp (Indiana) stock (MBIN) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Merchants Bancorp (Indiana) currently does not meet the threshold for the non-permissible income and interest-bearing debt screens. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Merchants Bancorp (Indiana) and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Merchants Bancorp (Indiana) MBIN reviewed for Shariah compliance?

Tabadulat reviews Merchants Bancorp (Indiana) MBIN for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Merchants Bancorp (Indiana) reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Merchants Bancorp (Indiana) stock (MBIN) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Merchants Bancorp (Indiana)'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Merchants Bancorp (Indiana) stock (MBIN) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Merchants Bancorp (Indiana)'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Merchants Bancorp (Indiana) stock (MBIN) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. Merchants Bancorp (Indiana)'s interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Merchants Bancorp (Indiana) MBIN stock?

Merchants Bancorp (Indiana) (MBIN) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Merchants Bancorp (Indiana) returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Merchants Bancorp (Indiana) stock (MBIN) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Merchants Bancorp (Indiana) has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Merchants Bancorp (Indiana)

NASDAQ

Shariah-Compliant

Not Shariah

MBIN

About

Merchants Bancorp (Indiana)

MBIN

Merchants Bancorp Inc. is a diversified bank holding company operating primarily through its subsidiary, Merchants Bank of Indiana. Its core function is to provide a range of financial products and services, particularly focusing on lending and deposit solutions. The company primarily serves businesses and individuals with offerings such as residential and commercial mortgage loans, construction loans, and agricultural loans. Additionally, it provides financing for multifamily housing and healthcare facilities through Merchants Capital Corp., a subsidiary engaged in mortgage banking. Merchants Bancorp plays a significant role in the banking sector by facilitating economic growth through its tailored lending programs, particularly within the multifamily and healthcare real estate sectors. With a commitment to delivering high-quality customer service and fostering strong community ties, the company continues to expand its influence across its operational regions. Merchants Bancorp's strategic approach to niche loan products and its adaptability to regulatory changes reflect its robust position in the financial market, catering to the nuanced needs of specific industries while maintaining steady growth and stability.

Sector:

Financial Services

Industry:

Banks - Regional

Employees:

663

Website:

https://investors.merchantsbancorp.com

MBIN

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Merchants Bancorp (Indiana)

About

Merchants Bancorp (Indiana)

MBIN

Frequently asked questions

Is Merchants Bancorp (Indiana) MBIN stock halal to invest in?

How often is Merchants Bancorp (Indiana) MBIN reviewed for Shariah compliance?

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Non Permissible Income criteria?

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Interest Bearing Investments criteria?

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Merchants Bancorp (Indiana) MBIN stock?

Does Merchants Bancorp (Indiana) MBIN pass the AAOIFI Preference Share screen?

Can I buy Merchants Bancorp (Indiana) (MBIN) stock on Tabadulat?

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