Short note on the Performance Budgeting Process

The performance budgeting process starts at the macro level when a blue print for a 3/5 year period is prepared at the corporate headquarters. The broad corporate objectives are conveyed to the Zonal Offices and from there to the Regional and Branch Offices.

The budgets are prepared at various levels keeping these broad corporate objectives in mind. A comprehensive budget is prepared, taking the branch, regional and zonal budgets into account.

Since performance budgeting is planning in quantifiable terms within a certain time span, banks usually undertake this exercise for a- fairly short period. The entire planning period is further divided into four quarters so that mid-term reviews and prompt remedial steps can be initiated continuously.