Evaluating Bank Performance Through the Balanced Scorecard Framework: An Empirical Study of the State Bank of India

Abstract

Banks need to continuously evaluate and improve their performance to enhance market share, profitability, and sustainability in a highly competitive and dynamic banking environment. Since banking products and services are largely intangible in nature, performance evaluation should incorporate both financial and non-financial dimensions. The Balanced Scorecard (BSC) provides a comprehensive framework integrating financial and non-financial performance measures. To evaluate and analyse the performance of the State Bank of India (SBI) using the Balanced Scorecard approach across multiple performance perspectives. The study is based on secondary data collected from SBI Annual Reports, Sustainability Reports, RBI publications, and authenticated financial databases. Tools & Techniques such as Graphs, charts, percentages, mean, averages, and standard deviation using MS-Excel are used. The study concludes that the Balanced Scorecard is an effective tool for assessing the overall performance of State Bank of India by integrating financial and non-financial measures. The findings indicate that SBI has shown stable financial growth, improved asset quality, enhanced customer reach, and significant progress in digital banking and financial inclusion during the study period. However, fluctuations in certain indicators highlight the need for continuous performance monitoring. It is suggested that SBI focus on improving cost efficiency, strengthening CASA deposits, enhancing digital infrastructure, and investing in employee skill development. Regular use of the Balanced Scorecard will help SBI align its strategic objectives with operational performance and achieve sustainable long-term growth.