Significance of Balanced Scorecard in Banking Sector: A Performance Measurement Tool

Ms Shikha Batra ., Dr Ambika Bhatia .


Performance management tool plays a pivotal task in evaluating strategic performance of banks. Financial ratios have long been used as a tool to evaluate the overall financial performance of a bank. But recently BSC has become increasingly important strategic management tool that translates visions into profitable actions, particularly focusing on intangible assets such innovation, employee skills and knowledge levels, customer relationships etc. Due to intensity of characteristics comprised in today’s markets whereby banking sector face fierce competition not only on a domestic scale but also on a global scale which compel them to drive strategy to achieve performance objectives such as long-term profitability and customer loyalty. In this paper, a relation between the significance of measurement of intangible assets and integration of contingencies in performance evaluation is shown which establishes the need to design a comprehensive performance evaluation system for Indian banks.


Balanced Scorecard, Financial Ratios, Intangible Assets, Performance Evaluation.

Full Text:



Anand, S. (2004), “Achieving Breakthrough Performance Using the Balanced Scorecard”, IBA Bulletin, Volume 12, page 28-31.

Arthur K. Yeung, Bob Berman (1997), “Adding value through Human Resources: Reorienting Human Resource Measurement to drive Business Performance”, Human Resource Management, Volume 36, No.3, page 321-335.

Ayesha Farooq, Zareen Hussain (2011), “Balanced Scorecard perspective on change and performance: A study of selected Indian Companies”, Journal of Global Strategic Management, Volume 9, page 168-179.

Bernard Morard, Alexandru Stancu, Jeannette Christophe (2012), “Time Evolution Analysis and Forecast of Key Performance Indicators in a Balanced Scorecard”, Global Conference on Business and Finance Proceedings, Volume 7,No.2, 2012, page 568-581.

Bontis, N. (2001), “Assessing knowledge assets: a review of the models used to measure intellectual capital”, International Journal of Management Reviews, Volume 3, page41-60.

Bruns, W. (1998), ``Profit as a performance measure: powerful concept, insufficient measure’’, Performance Measurement – Theory and Practice: the First International Conference on Performance Measurement, Cambridge, page 14-17.

B S Sahay, Manoj Anand, and Subhashish Saha (2005), “Balanced Scorecard in Indian Companies”, the Journal-Vikalpa, Volume 30, No.2.

Chang, L. C. (2007), “The NHS performance assessment framework as a balanced scorecard approach limitations and implications,” International Journal of Public Sector Management, Volume 20, No. 2, page 101-117

Davis, T.R.V. (1996), “Developing an employee balanced scorecard: linking frontline performance to corporate objectives”, Management Decision, Volume 34, No. 4, page 14-18.

Evans, N. (2005), “Assessing the Balanced Scorecard as a Management Tool for Hotels”, International Journal of Contemporary Hospitality Management, Volume 5, No.17, page 376-390.

Frigo, M.( 2002), “Financial ratios, Strategy and the balanced scorecard”, Strategic Finance, Volume 8,No.4,page 6-9.

Greiling, D. (2010), “Balanced scorecard implementation in German non-profit organizations”, International Journal of Productivity and Performance Management, Volume 6, No. 59, page. 534-554.

Ghalayini, A.M. and Noble, J.S. (1996), ``The changing basis of performance measurement’’, International Journal of Operations & Production Management, Volume 16, No. 8, page 63-80.

Huang, H., & Lin, X. (2006), “From Strategy to Action: The Balanced Scorecard for Commercial Banks”, Journal of Beijing Institute of Technology, Volume 6.

Ittner, C.D. and Larcker, D. (1996), “Measuring the impact of quality initiatives on firm financial performance”, The Economic Impact of Knowledge, Butterworth, Boston, MA, page 273-93.

Khwala H. Kalaf, Sabah M. Al-Najjar (2012) “Designing a Balanced Scorecard to Measure a Bank's Performance: A Case Study”, International Journal of Business Administration, Volume 3, No.4, page 44-53.

Kaplan, R.S. and D.P. Norton, (1996), “The Balanced Scorecard: Translating Strategy into Action”, Harvard Business School Press, Boston, Volume 1, No.1, page 322.

Kaplan, R. and Norton, D. (1997), “Why does business need a balanced scorecard?”, Journal of Strategic Performance Measurement, page 5-11.

Patra, R., and Khatik, S.K. (2003), “Human Resource Accounting Policies and Practices: a Case Study of Bharat Heavy Electricals Limited, Bhopal, India”, International Journal of Human Resources Development and Management, Volume 3,page 285-296.

Stan Davis, Tom Albright (2004) “An investigation of the effect of Balanced Scorecard implementation on financial performance”, Management Accounting Research, Volume 15, No.2, page 135–153

T.K.Mukherjee, Smita Pandit(2009), “Role of Business Balanced Scorecard(BBSC) in Performance Management”, GMJ, Volume 3,No.1,page 50-55.

Waal, A.A. (2003), “The future of the balanced scorecard: an interview with Professor Robert S. Kaplan”, Measuring Business Excellence, Volume 7, No. 1, page. 30-35.

Zhang, Y., & Li, L. (2009), “Study on balanced scorecard of commercial bank in performance management system”, Proceedings of the 2009 International Symposium on Web Information Systems and Applications (WISA’09) Nanchang, P. R. China, May 22-24, page. 206-209.


  • There are currently no refbacks.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),,

Copyrights © 2010-2020 - ERM Publications, India     

This work is licensed under