The late 20th century has witnessed the usage of Information & Communication Technology by banks which sharpened and expanded its horizon to managing money and offering different products and services like e-banking, m-banking, ATMs to customers across the world. Technological advancements and changing social trends such as heightened customer pro-activity and increased preferences for convenience have caused intense restructuring of the banking services sector through investment into ICT infrastructure. While change was glacially slow at first, the pace of evolution has recently been accelerating, and there is no reason at all to think that will stop. The aim of the present paper is to study and find out the rapid development and wide application of Information and Communication Technology (ICT) in banking sector and how ICT investment impacts the banking performance. Through this paper light is also thrown on the future of internet banking and mobile banking in India.