Measuring the Performance Efficiency of State Bank of India and HDFC Bank using Balanced Score Card

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  • Director, Krishnapriya Institute of Banking Studies and Management Research, Kottayam – 686001, Kerala ,IN
  • Equity & Derivative Dealer, SBI Caps Securities, Kochi - 682 031, Kerala ,IN



Balanced Score Card, Financial Perspective, Internal Business Perspective, Organizational Growth Process
Bank Management


The research article presents performance analysis of the State Bank of India Ltd and the HDFC Bank Ltd using Balanced Score Card (BSC) developed by Robert Kaplan and David Norton. It attempts an analysis to develop a deep understanding of the concept of BSC as a tool for strategy mapping and measurement of performance of a public sector bank and a private sector bank as mentioned elsewhere. BSC is a performance evaluation system not only based upon financial parameters, but also on non-financial aspects like customer indicators, internal business processes and employee learning and growth. Actual performance data from years 2009 to 2019 and business indicators of the year 2020 of the Banks are used for this purpose. The BSC model was developed to address the problems and limitations of relying only on financial measures for strategy formulation and measuring organizational performance. The study revealed that Gross NPA of SBI has increased while that of HDFC Bank has reduced during the period of study. Obviously the ROA is also better for HDFC Bank compared to that of SBI. It is inferred that HDFC Bank has garnered more net profit than SBI during the period of study. HDFC Bank has shown better performance compared to SBI according to the current study. The implication of the study is that both the banks have to visit all the areas of their business to ensure growth in financial performance, better customer service, efficient internal processes and higher learning and growth in the future years. This could ensure better profit management and risk management.


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How to Cite

K., S., & Hari, H. (2021). Measuring the Performance Efficiency of State Bank of India and HDFC Bank using Balanced Score Card. SDMIMD Journal of Management, 12(2), 11–31.



Research Papers



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