[Eranga]

Using a Jpanel you can easily done this. Why I suggest to use a JPanel is, on top of that you can easily work on with other controls. In some cases of my projects I used JLables also. Add a image on that and do my process. But on a Lable I can't add any other component. But in JPanel you can do it. On working with JLables ToolKit gives a nice support.

Code:

        ImageIcon imageBack = new ImageIcon(your_image_Path_here);
        JLabel background = new JLabel(imageBack);
        background.setBounds(0, 0, imageBack.getIconWidth(), imageBack.getIconHeight());
	getLayeredPane().add(background, new Integer(Integer.MIN_VALUE));
        jPanel1.setOpaque(false);
        setContentPane(jPanel1);

See how I use a Lable and JPanle used here. I think it is clear to you.