Integrating ESG into the Balanced Scorecard: An Evaluation of ICICI Bank's Performance

Abstract

Banks need to continuously evaluate and improve their performance to strengthen market share, profitability, and long-term sustainability in an increasingly competitive and dynamic banking environment. Since banking products and services are largely intangible in nature, performance evaluation should incorporate both financial and non-financial dimensions. The Balanced Scorecard (BSC) provides a comprehensive framework that integrates financial and non-financial performance measures. This study evaluates and analyses the performance of ICICI Bank, a leading private sector bank in India, using the Balanced Scorecard approach across the financial, customer, internal business process, learning and growth, and social-environment-governance perspectives. The study is based on secondary data collected from ICICI Bank's Annual Reports, Integrated Reports, RBI publications, and authenticated financial databases for the period 2019-20 to 2023-24. Tools and techniques such as graphs, charts, percentages, mean, and standard deviation using MS-Excel have been used. The study finds that ICICI Bank strengthened its shareholder returns and maintained a comfortable capital buffer through the study period, alongside sustained double-digit credit growth and a notable recovery in digital transaction indicators in 2023-24. At the same time, a moderating profit growth rate, a gradually declining CASA ratio, and the absence of a formally disclosed human capital development policy point to specific areas requiring managerial attention, even as asset-quality ratios continued to improve steadily through the period. The Balanced Scorecard is found to be an effective tool for capturing this composite performance picture, and it is suggested that ICICI Bank focus on strengthening low-cost deposit mobilisation, stabilising asset-quality indicators, and formalising human capital development disclosures to sustain long-term, well-rounded performance.