The aim of this paper is to explore the banks' managers’ perceptions towards equitybased financing practices in Malaysia. The study uses qualitative approach to explore in detail their perceptions as well as the experiences towards equity-based financing practices in Islamic banking approach. In-depth interviews with Islamic banks’ managers in Malaysia and thus phenomenological strategies are used in analyzing the data. It is concluded that the interviewees have considerable perceptions towards equity-based financing practices and this paper proposed the future work of research.