Application which are installed in client pc and then run it.
example... Paint, Ms-Office, notepad
etc... this are normally have .exe
Application which are run in web browsers like google-Crome, Mozila Firefox, opera, safari, Internet-explorer
example... net banking, olx, naukri.com
this are running in browser you are not installing them in pc to use them. you will simply need a web browser to use these applications.
hope it clear your doubts