Article
Performance Evaluation of Selected Indian Public Sector Banks: An Extended Balanced Scorecard Approach
This study used the Balanced Scorecard (BSC) concept developed by Kaplan and Norton (1992). The empirical study evaluated the performance of three selected public sector banks in India, namely Canara Bank (CB), Union Bank of India (UBI), and UCO Bank, using an extended Balanced Scorecard framework comprising Financial, Customer, Internal Business Process, Learning and Growth, and Environmental, Social and Governance (ESG) perspectives. Further, profitability of these banks during the period from 2016–2025 was measured in terms of Return on Assets (RoA) and Return on Equity (RoE). In addition, this paper examined the relationship between profitability and variables of the BSC framework using correlation and multiple regression analysis. The results revealed variations in the performance of the selected banks across the different perspectives of the BSC framework. Correlation analysis disclosed statistically significant relationships of GP, GII, TANB and GNMT with RoA, while CIR, GII, TANB, ITAR, GNMT and RPSATA exhibited significant relationships with RoE. The results of multiple regression analysis revealed that GP and TANB had a significant positive influence on RoA, whereas GNMT exhibited a negative influence. The model explained 65.1 per cent of the variation in RoA. For RoE, the selected BSC variables jointly explained 63.7 per cent of the variation, although none of the individual variables emerged as statistically significant predictors at the 5 per cent level. The findings indicate that profitability of public sector banks is influenced not only by financial measures but also by customer, internal business process, learning and growth, and ESG dimensions. Therefore, the adoption of an extended BSC framework provides a comprehensive approach for evaluating bank performance and identifying the key drivers of profitability.