There is an emerging requirement to focus on the performance measurement tools and their usage. To overcome the challenges of an increasingly complex and dynamic competitive environment, organizations are rethinking their performance measurement systems. Each day improvements in the systems and businesses are taking place, new techniques and methods are being developed to measure the performance from different aspects. During the last two decades the focus of businesses has got increased on performance measurement. Measurement has been recognized as a crucial element to improve business performance. The earlier focus of performance measurement was on financial perspective which is gradually changing to non-financial perspectives. Effective performance measurement features identified include linking operations to strategic goals, and taking financial as well as non financial perspective of performance. Traditional performance measurement systems, meanwhile, typically stress the short term, focusing on past achievements while largely ignoring the drivers of future performance. Information about performance measurement is critical to the effective functioning of any organization. The aim of this research paper is to explore the usage of contemporary performance measurement tools in the context of Indian banking sector. Specific frameworks, which can be utilized by the banks to measure performance in this way, are also considered with a particular focus on the Balanced Scorecard (BSC) as a measurement tool which meets the demands of global and contemporary banking environment.
