A Comparative Performance Measurement of Select Indian Commercial Banks: Application of Balanced Scorecard Model

Abstract

A balanced scorecard is a holistic tool of measurement which includes both tangible and intangible values of the organization for performance evaluation. The present study attempts to explore the application of the balanced scorecard to assess and differentiate the performance of select Indian public and private banks. To achieve these objectives, banks’ performance is measured on the identified twenty financial and non-financial key performance indicators and has been assigned scores based on performance scales. Further, statistical tools are exerted to test the hypotheses of this study. The t-test reveals the operation of public and private banks is significantly different given customer perspectives among all perspectives of the Balanced Scorecard approach over the period. This research concludes that Indian commercial banks’ performance from a financial perspective is good and needs to improve the performance of the banks related to the innovation and growth perspective of the balanced scorecard.