INTERNAL BUSINESS PROCESS PERSPECTIVE OF BALANCED SCORECARD: DRIVER TO OUTSHINE IN FRONT OF CUSTOMERS AND SHAREHOLDERS (AN EMPIRICAL STUDY ON INTER-BANK AND INTER-SECTOR COMPARISON OF PUBLIC AND PRIVATE SECTOR BANKS IN INDIA)

Abstract

This research paper exhibits the relevance of an imperative perspective of Bank’s Balanced Scorecard i.e. Internal Business Process Perspective. It aims to evaluate, ascertain and compare the significant difference in the performance of Public and Private Sector Banks in India. The sample size includes 10 Public Sector Banks and 10 Private Sector Banks. 10 consecutive Financial Years from 2007-08 to 2016-17 have been taken as study period. Data have been collected through secondary sources and analysed through non-parametric tests using IBM SPSS 22 after creating a performance score scale for each measure selected under this perspective on the basis of performance. The study revealed a significant difference among public sector banks and among private sector banks when an inter-bank comparison has been drawn and no significant difference has been found between public sector banks and private sector banks when an inter-sector comparison has been drawn. To improve the performance of banks on internal business perspective, banks should try to improve their operational efficiency through improved speed, timely, prompt, convenient, accurate and cost efficient services, achieve proficiency in operational capabilities through improved productivity of employees and try to achieve operational excellence through cost efficiency, cross sell efficiency, CRM capacity, improve distributional channel capacity. This will leads to improvement in customer experiences with the banks thus leads to profitability.