Although public sector banks had formulated and achieved the management strategic goals, there remain certain loopholes that restrict the growth in the long-term perspective. Hence, there is the need for identifying the critical success factors and prioritizing the same in line with the strategic goal. The matrix of balanced scorecard will form the foundation of the new type of performance measurement and ongoing improvement. The balanced scorecard model is suggested for public sector banks to face the real challenge in the potential market. This model is not a new invention, but it is a refined form of traditional performance measurement system.

The globalization and liberalization in India over the past two decades has resulted in the tremendous development of its economy. This has not gone unnoticed in businesses like manufacturing sector, service sector, etc. The achievement in service sector is astounding. The prime objective in any type of business so far had been of optimum profit, so it is today. Optimum profit is ensured with efficient utilization of available resources. Measuring different business parameters enables one to determine the performance with respect to achievement of the vision and strategy. At times it is only some of the key parameters or processes which are achieved; therefore, there arises the need for a concrete thought process for future long-term development. The question that arises is, what can be done for the key factors that are not achieved and the reasons for which they are not achieved. Over the past two decades manufacturing units have been performing well in spite of the fact that some of the key factors have not been achieved. Service sector units have also acted in a similar fashion.

Today the public sector banks are gaining profits, in spite of their rigorous fight to reduce Non-Performing Assets (NPA), balance Capital Aadequacy Ratio (CAR), maintain Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), etc. Even after such committed efforts, lot many things go unattended to conventional system of measurements addresses only the past actions. Therefore, an efficient management and measurement system for the key factors forms a very important criterion for public sector banks.

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