Study on Performance Evaluation of Indian Banks using Balanced Scorecard with Special Reference to Public and Private Sector Banks

Abstract

Concept of Balanced Scorecard devised by Kaplan and Norton is used under study. The performance of three banks each from public and private sector namely of Canara Bank, IDBI Bank, Bank of India, ICICI Bank, Axis Bank, and Yes Bank are empirically evaluated using BSC. Moreover, profitability of the banks is measured by Return on Assets (ROA) and Return on Equity (ROE) during the study period of 2012-2017. The study also highlights the association between ROA and ROE and their variables in BSC framework using multiple correlations and multiple regressions. Axis bank has done excellent in all perspectives except internal processes where it has to strive for effective utilization of resources. Yes bank has improved marginally in all perspectives of BSC except Learning and growth perspective in which it has to increase its resources. BOI and Canara outshined in customer satisfaction and internal processes but failed in financial and Learning and growth perspectives. IDBI bank has to provide due care in devising strategic plan in all perspectives albeit it used its internal available resources effectively and efficiently. ICICI bank outperformed in all perspectives but not in customer satisfaction which should be taken care of.

On analyzing multiple regressions through residual diagnostic tests, it has been observed that ROA is influenced by CIR, NIM, RPSTA, and RWBTA, and ROE by CIR, NIM, and PPE.