Explosive growth in Information and Communication Technology have removed narrowed digital divide and turned business sphere to electronic world. Specifically, technological innovations have led credence to global transformation of operational dimension of traditional banks over a decade ago. Internet technology has brought about a paradigm shift in banking operations to the extent that banks embrace internet technology to enhance effective and extensive delivery of wide range of value added products and services. Electronic banking is the use of electronic and telecommunication networks to deliver a wide range of value added products and services to bank customers. The use of information technology in banking operations is called electronic banking.  Electronic banking is a product of e-commerce in the field of banking and financial services. Banks are also offering payment services on behalf of their customers who shop in different shops. It is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands that banks serve their customers electronically.

KEYWORDS: business environment, E- Banking, profitability, technological innovations