Banking is the key machine in the financial engineering which inputs the poor with finance and helps them to stand them on their own feet and thus responsible for the inclusive and overall growth of the country. Cooperative banks are different from the private banks and government banks. The aim of the cooperative bank is to cooperate with the poor people and guide in overall progress, which includes not only economical but also psychological balance. Access of financial services to the poor is indeed important for the success of any economy. But still it is believed that India needs inclusive banking and pro poor banking. It is found that most of the rural part of the India is out of the reach from the bank.

Evaluating the concepts of Islamic banking and cooperative banking, this paper discusses the use of new trends and scope for cooperative banking in the light of Islamic banking to make it more useful and trustworthy to the poorest of the poor to assimilate in the process of financial engineering and inclusive growth. This paper tries to synthesis between these two aspects in the background of Indian microfinance and inclusive banking. This paper is an attempt to introduce an innovative and productive banking system in India which has a spiritual base. The authors are aiming for the evolution of banking system in India having a spirit of inclusive growth,
upliftment and empowerment of poor by introducing new ways in the existing cooperative banking structure.