Internet is significant for redefining and reshaping the various concepts in all spheres of life. To acquire ease, swiftness and downsizing, have a forceful edge over the competitors, homogenize qualitative services, swell market share, and on the whole, to get better eminence, Internet has become an appropriate pedestal for banking sector as well. The present study is an endeavor to explore the factors influencing Internet banking. A sample of 250 Internet banking customers was examined for the said purpose. The factor analysis has identified seven factors influencing Internet banking—lack of security and confidentiality, inadequate infrastructure and connectivity, limited e-skills, no restoration and personal touch, uncertainty about the completion of transactions, lack of evidence and faith, and inadequate regulatory mechanism—which collectively account for 83.51% of the total variance. The findings of the present study may be helpful to the banking regulatory authorities, customers and the researchers in the area for the qualitative expansion of Internet banking in India.

Technological explosion is instrumental in redefining, reshaping and redescribing the various concepts in all spheres of life. In the line up, the emergence of Internet is also considered as the key driver for the changes taking place around the world. To acquire ease, swiftness, downsizing, have a forceful edge over the competitors, homogenize qualitative services, swell market share, and on the whole, to get better eminence, Internet has turned out to be a vital part of the banking sector as well. In India too, the use of Internet has played a significant role in the makeover of the banking sector. According to the latest statistics (World Internet User Statistics, 2010), in the list of nations with high number of Internet users, India stands fourth with 4.1% growth during 2000-10, after China (21.4%), United States (12.2%) and Japan (5.0%). It positively signifies that the rising number of Internet users will prosper the Internet banking in India.

To take advantage of Internet as an appropriate pedestal for the banking sector, there is a need to identify the factors that are influencing its growth and expansion. So far, various Technological explosion is instrumental in redefining, reshaping and redescribing the various concepts in all spheres of life. In the line up, the emergence of Internet is also considered as the key driver for the changes taking place around the world. To acquire ease, swiftness, downsizing, have a forceful edge over the competitors, homogenize qualitative services, swell market share, and on the whole, to get better eminence, Internet has turned out to be a vital part of the banking sector as well. In India too, the use of Internet has played a significant role in the makeover of the banking sector. According to the latest statistics (World Internet User Statistics, 2010), in the list of nations with high number of Internet users, India stands fourth with 4.1% growth during 2000-10, after China (21.4%), United States (12.2%) and Japan (5.0%). It positively signifies that the rising number of Internet users will prosper the Internet banking in India.

Bank Management Journal, Indian Banks, Asset Liability Management, Data Filtering, Least Absolute Deviation, Decision-Making Group, Commercial Banks, Ordinary Least Square, Banking Industry, Kenyan Banks, Least Squares Regression, Mutual Fund Industry, Linear Programming, Financial Markets, Capital Required Adequacy Ratio, Public Sector Banks.