Cooperative banks is an emerging sector in India, today many cooperative banks have to satisfy the needs of shareholders and customers .cooperative banks is an integral part of banks today ,many banks are not merely earning profit they also focus on development of society , the chairman of Infosys foundation Sudha Murthy said “ corporate social responsibility not merely a job but its passion and compulsory spending on corporate social responsibility is a blessing and not burden on companies “ the success of any cooperative banks is based on good relation with society, group and institutions. Today corporate social responsibility is playing significant role in enhancing the society. New legal mandate imposed to ensure equal employment opportunities, and demonstrates their responsibilities to the stockholders, employees, customers. The banks are coming forward to give assistance to public .in these connection Indian cooperative banks should go beyond their economic and legal obligations to establish mutual trust and accept responsibilities related to betterment of society. The paper examines cooperative banks & the role of cooperative banks practices of CSR in Karnataka. Paper also focuses on challenges and opportunities of cooperative banks. Keywords: Cooperative Banks, Corporate Social Responsibilities, Challenges, Opportunities, Shareholders.