Abstract:
The new millennium has brought with it a sea phase change in the areas of economic activities
with the banking sector gearing up for survival, productivity and enlarging the customer base.
Performance of Financial institutions is a generally measured by applying quantitative techniques
of financial measurement. It is a post-mortem examination technique of achievement of a bank.
Differences in measured efficiency of banking institutions broadly arise on account of [I] different
efficiency concepts used; [2] different measurement methods used to estimate efficiency; and [3]
a host of other exogenous and endogenous factors. Nevertheless, to know about the existence of
performance drivers in an institution, both quantitative and qualitative aspects of performance
measurement are to be considered. CAMEL rating system, basically a quantitative technique, is
widely used for measuring performance of banks. Concepts of Balanced Scorecard [BSC], which
covers both quantitative and qualitative aspects of performance measurement, may be used to
measure the long term prospect of performance was recommended. This paper also examines the
extent of awareness and adaptability of Economic Value Added [EVAJConcept of the Indian Banks
and suitable suggestions were drawn.
