4 Most Important Objectives of Performance Budgeting in the banking industry are given below:
Performance Budgeting has been introduced in the banking industry to meet the following objectives:
i. To enable branch manager to acquire competence in planning and assist them in self-assessing their performance;
ii. To prepare realistic operational plans for the grass root level of branches so that a satisfactory growth rate is ensured;
iii. To provide the Head Office, Regional Development Offices and Zonal offices with a tool for monitoring branch performance;
iv. To involve the workforce in planning and implementation of plans, thereby making for their motivation.