Most of chip-multiprocessors share a common large sized last level cache (LLC). In non-uniform cache access based architectures, the LLC is divided into multiple banks to be accessed independently. It has been observed that the principal amount of chip power in CMP is consumed by the LLC banks which can be divided into two major parts: dynamic and static. Techniques have been proposed to reduce the static power consumption of LLC by powering off the less utilized banks and forwarding its requests to other active banks (target banks). Once a bank is powered off, all the future requests arrive to its controller and get forwarded to the target bank. Such a bank shutdown process saves static power but reduces the performance of LLC. Due to multiple banks shutdown the target banks may also get overloaded. Additionally, the request forwarding increases the on chip traffic. In this paper, we improve the performance of the target banks by dynamically managing its associativity. The cost of request forwarding is optimized by considering network distance as an additional metric for target selection. These two strategies help to reduce performance degradation. Experimental analysis shows 43% reduction in static energy and 23% reduction in EDP for a 4MB LLC with a performance constraint of 3%. © 2015 IEEE.