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With the development of information communication technology, the scenario of banking industry has changed (Riffai et al., 2011). In the recent scenario of banking, there has been an explosion of electronic banking services (Liao and Cheung, 2003), which has created highly competitive market conditions for banking service providers (Beckett et al., 2000). To retain the existing customers and to attract new ones, introduction of innovative delivery channel has become very important to financial institutions (Kimball and Gregor, 1995). The innovative delivery channel has become so important that various public and private sector banks are offering new banking channels to their customers with the help of advanced information technology. The role of information technology in the development of financial services industry, especially in the banking industry, has become very crucial (Kannabiran and Narayan, 2005). Internet banking is a new delivery channel for various banking services that have come into the picture due to innovation in information technology. Internet banking services allow customers to use remote access to manage their bank accounts and transactions (Weir et al., 2006). Most of the developed countries have already adopted information technology-based banking channels like Internet banking/e-banking. But the adoption of Internet banking in India is not as rapid as their developed counterparts. However, the emergence of various private sector banks in the country during the mid-1990s has changed the scenario drastically, as the business model of these banks revolved around a strong IT backbone. The emergence and success of private banks over the last decade has put competitive pressure on the public sector banks to consider IT as a strategic necessity to remain competitive (Kannabiran and Narayan, 2005).
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