This paper is an attempt to analyze the practices of Mudarabah and Musharakah been held by the existing Islamic banking. This paper aims to explore the different aspects where Islamic banks were found to be violating the basic rules in these two primary modes of Islamic finance. This paper denies the current practices of Mudarabah and Musharakah at many grounds, like its existence with the concept of limited liability, absentee as a partner, supervisory role of the state bank, and its role as sleeping Mudarib. Similarly, the expense and profit estimation techniques and the acquired procedure to maintain the minimum account balance requirement were also inappropriate with the basic tenets of Shari'ah Principles. This article argues that the structure of overall Islamic banking is purely based on interest bearing investment and financing. It further argues that they deal only in money; they are not involved in any kind of business or trade. According to the authors, the contemporary Islamic banks are inconsistent with Shari'ah in their practices