This study used the balanced scorecard (BSC) concept developed by Kaplan and Norton (1992). The empirical study evaluated the performance of top three public sector banks in India namely, State Bank of India, Bank of Baroda, and Punjab National Bank using the balanced scorecard framework developed for these banks. Further, profitability of these banks during the period from 2006 - 2015 was measured in terms of return on assets (RoA) and return on equity (RoE). In addition, this paper also examined the relationship between profitability and variables in the BSC framework using correlation and multiple regressions. The results revealed variance in the performance of the three banks in balanced scorecard perspectives. The outcomes also disclosed statistically significant relationship of the variables - capital adequacy ratio, net non-performing assets ratio, number of ATMs, and number of skilled employees with RoA. The variables - capital adequacy ratio, net non-performing assets ratio, number of ATMs, number of skilled employees, and ratio of wage bills to total income disclosed statistically significant relationship with RoE. The results of regression analysis revealed the variable - net non-performing assets ratio had a significant direct linear relationship with RoA. On the other hand, the variable - capital adequacy ratio was found to have a direct relationship and net non-performing assets ratio had an inverse relationship with RoE.

1. Asa, A. R., Prasad, N. S., & Htay, M. M. (2013). Balanced scorecard: A paradigm measure of business strategy and firm performance. International Journal of Scientific & Technology Research, 2(4), 121 - 125.
2. Ashton, C. (1998). Balanced scorecard benefits: Nat West Bank. International Journal of Retail and Distribution Management, 26 (10), 400 - 401.
3. Banker, R. D., Chang, H., & Pizzini, M. (2004). The balanced scorecard: Judgmental effects of performance measures linked to strategy. Accounting Review, 79 (1), 1 - 23.
4. Chiang, C. - Y., & Lin, B. (2009). An integration of balanced scorecard and data envelopment analysis for firm’s benchmarking management. Total Quality Management, & Business Excellence, 20 (11), 1153 - 1172.
5. Dave, S. R., & Dave, S. R. (2010). Applying balanced score card in the Indian banking sector : An empirical study of the State Bank of India (SBI). Pacific Business Review International , 5 (6), 108 -120.
6. Dave, S. R. (2011). Balanced scorecard: Experimenting with Indian banks (1st ed.). New Delhi : Himalaya Publishing House.
7. Davis, S., & Albright, T. (2004). An investigation of the effect of Balanced Scorecard implementation on financial performance. Manage Accounting Research, 15 (2), 135 - 153.
8. Harold, L. (2006). Performance measurement and management of technology in Indian banking: New approaches. Contributors I, Bank Net India, 5 (May), 6 - 18.
9. Irala, L. R., Reddy, R., & Reddy, S. P. (2008). How balanced is the performance measurement through the balanced score card. Indian Journal of Finance, 2 (1), 27 - 37.
10. Kaplan, R. S., & Norton, D. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70 (1), 71 - 79. (Reprint #92105.)
11. Kaplan, R. S., & Norton, D. (1996a). The balanced scorecard: Translating strategy into action. Massachusetts : Harvard Business School Press.
12. Kaplan, R. S., & Norton, D. (1996b). Linking the balanced scorecard to strategy. California Management Review, 39 (1), 53 - 80.
13. Kaplan, R. S., & Klien, N. (1996). Chemical bank: Implementing the balanced scorecard, Case studies from Harvard Business School. Boston : Harvard Business School Publishing.
14. Kochhar, C., & Anand, S. (2004). IBA-Cedar consulting joint seminar on balanced scorecard (Key Note Presentation). December 17, 2004, Mumbai. Retrieved from gtm <a href=http://www.iba.org.in/IBA-Cedar%20Consulting-Presentation%20by%20Ms.Chanda%20Kochhar.ppt target="_blank">http://www.iba.org.in/IBA-Cedar%20Consulting-Presentation%20by%20Ms.Chanda%20Kochhar.ppt</a>
15. Krishnan, A., Ramasamy, R., & Joshi, P. L. (2014). An empirical study of non-financial measures' emphasis for the compensation schemes on different categories of strategic orientation in Malaysia. Indian Journal of Finance, 8 (12), 7 - 20. doi:10.17010/ijf/2014/v8i12/71688
16. Kumar, S. (2010). Performance measurement systems in Indian banking sector (Thesis). Submitted to Faculty of Business Studies, Department of Commerce, Punjabi University, Patiala, Punjab.
17. Mundra, S. S. (2015). Indian banking sector - Emerging challenges and way forward. Memorial Lecture Series by State Bank of Mysore, Bangalore. Retrieved from <a href=http://www.bis.org/review/r150511f.htm target="_blank">http://www.bis.org/review/r150511f.htm</a>
18. Panicker, S., & Seshadri, V. (2013). Devising a balanced scorecard to determine Standard Chartered Bank's performance: A case study. International Journal of Business Research and Development, 2 (2), 35 ‐ 42.