In this paper we consider the problem of (k,\nu)-balanced graph partitioning - dividing the vertices of a graph into k almost equal size components (each of size less than \nu \cdot \frac{n}{k}) so that the capacity of edges between different components is minimized. This problem is a natural generalization of several other problems such as minimum bisection, which is the (2,1)-balanced partitioning problem. We present a bicriteria polynomial time approximation algorithm with an O(\log^2{n})-approximation for any constant \nu>1. For \nu=1 we show that no polytime approximation algorithm can guarantee a finite approximation ratio unless P=NP. Previous work has only considered the (k,\nu)-balanced partitioning problem for \nu\ge 2.