Sensitive database such as a banking application contains the bank account details of all customers in a particular bank. The necessity of this application is to keep data confidential which are managed by higher officials in bank. The static password method is used for providing security for e-transaction nowadays. This method leads to various attacks like Brute force attacks, Dictionary attack, Shoulder sniffing and guessing. To overcome the issues in static method, dynamic password method has been introduced, which changes the login password for every session. Since password changes dynamically, guessing of passwords avoided and if the intruder knows current session password it became invalid for next session. This proposed method has two level of authentication. In first phase it checks for user’s Id, password and random colour priority. In second phase Knuth-Morris-Pratt algorithm has been used which matches string pattern in generated random matrix for providing dynamic password in every session. © 2016, International Journal of Pharmacy and Technology. All rights reserved.