Banking environment has become highly competitive today. Information technology refers to the acquisition, processing, storage and dissemination of all types of information using computer technology and telecommunication systems. Information technology architecture is an integrated framework for acquiring and evolving IT to achieve strategic goals. These technologies are used for the input, storage, processing and communication of information. Information technology includes ancillary equipment, software, firmware and similar procedures, services etc. Modern high throughput technologies are providing vast amounts of the sequences, expression and functional data for genes and protein. Recent developments of banking sector in india are Internet, Society for worldwide inter-bank financial telecommunications (SWIFT), Automated Teller Machine (ATM), Cash dispensers, Electronic clearing service, Bank Net, Chip card, Phone banking, Tele-banking, Internet banking, Mobile banking, Anywhere banking, Voice mail, E-banking Etc., The basic need of Information Technology (IT) in Banking Sector are Meeting Internal Requirements, Effective in Data Handling, Extending Customer Services, Creative Support for New Product Development, End-user Development of the Non-technical Staff. Emerging trends of information technology in banking sector are Outsourcing, Integration, Distinctive Edge, IT as Profit Centre, Prospering in Down Market. Internet has emerged as an important medium for delivery of banking products and services. Technological innovations witnessed by the banking sector during the nineties have changed the way business needs to be conducted. IT has introduced new business paradigms and is increasingly playing a significant role in improving the services in the ban king industry. The paper aims to explore some important and popular IT enabled services of banking institutions, its benefits and issues at present.