COMBINE sweetened condensed milk and water in large bowl. Add pudding mix and coconut; mix well. Fold in 1 1/2 cups whipped topping.
ARRANGE single layer of bananas on bottom of pie crust. Pour filling into crust. Top with remaining whipped topping. Refrigerate for 4 hours or until well set. Top with coconut.
NOTE: To make 2 pies, divide filling between 2 prebaked 9-inch (2-cup volume each) pie crusts. Top with remaining whipped topping.