The bank originally opened in 2004 as a wholly Sharia compliant bank.
In January the bank was acquired by Masraf Al Rayan, the second largest bank in Qatar.
With £100m of capital investment from its parent company the IBB widened its product range, offering the first ever Sharia-compliant Help to Buy home purchase plan from 1 October.
Sultan Choudhury, chief executive officer of IBB, said: “IBB has pioneered British retail Islamic banking over the last 10 years, achieving global recognition for its outstanding successes.
“The change to Al Rayan Bank represents the latest chapter in the bank’s history, in which it will expand its retail and commercial product offering to a wider audience, with the backing of a strong and successful parent.
“Importantly, the bank will preserve the spirit of IBB, remaining a British Islamic bank dedicated to strong, faith-based ethics and great customer service.”
The bank will have a new Al Rayan Bank logo, while its identity will be changed across the bank’s branches website, literature and other materials.
Al Rayan Bank will continue to operate as a UK regulated bank, and customers’ deposits will remain protected by the Financial Services Compensation Scheme.
The Birmingham-based bank said it plans to develop its presence in London.