PERCEPTION OF CUSTOMERS TOWARDS CROSS-BUYING BANK

PRODUCTS

SUMMER INTERNSHIP PROGRAM 2018

With HDFC BANK

Submitted by

HARISH S F18080

For the award of

Post Graduate Diploma in Business Administration

2018-2020
BONAFIDE CERTIFICATE
This is to certify that the Summer Internship Project entitled “perception of
customers towards cross-buying bank products” submitted by S HARISH F18080
to Loyola Institute of Business Administration, Chennai for the award of the Post
Graduate Diploma in Management (PGDM) is a bonafide record of research work
carried out by him under our supervision. The contents of this report in full or in
parts have not been submitted to any other Institute or University for the award
of any degree or diploma. The project work has been carried out at Asian Paints
Limited.

Date: Project Mentor

Chennai Dr. Shanthi Venkatesan
LIBA

Date: Project Guide

Mr Narendra
Head Relationship Manager
HDFC Bank, Mylapore Branch
ACKNOWLEDGEMENT
I extend my heartful gratitude to all those who helped in my project and made it
possible to complete it successfully. I would like to thank the summer internship
program of HDFC bank; HR team for their amazing organization of the program.

I convey my gratitude to my project guide Mr Narendra, Head Relationship

Manager HDFC Bank, Mylapore for his guidance and supervision.

I express my sincere thanks to the admin officers and employees of HDFC Bank,
Mylapore branch for their continuous support and guidance.

I extend my deepest gratitude to my project mentor Dr. Shanthi Venkatesan,

LIBA and my esteemed Institute LIBA for their constant support throughout the
project.

I thank all the wonderful people that I met during my course of internship who
motivated me in my solo journey. I wouldn’t forget to acknowledge the love and
encouragement that I had received in abundance from my family and friends.

This internship proved to be a golden opportunity to learn and grow as a

management professional as well as a responsible individual. I’ll be ever thankful
for this opportunity.

S HARISH
Contents
BONAFIDE CERTIFICATE .................................................................................................................. 2
ACKNOWLEDGEMENT ...................................................................................................................... 3
CHAPTER 1 INTRODUCTION ............................................................................................................ 6
1.1 ABOUT THE BANK:....................................................................................................................... 6
1.2 AWARDS & RECOGNITIONS:...................................................................................................... 7
2015 .................................................................................................................................................... 7
2016 .................................................................................................................................................... 8
2017 .................................................................................................................................................... 9
2018 .................................................................................................................................................. 10
2019 .................................................................................................................................................. 11
1.3 CSR INITIATIVES: ....................................................................................................................... 11
1.4 CROSS PRODUCTS: ..................................................................................................................... 12
Savings Account: .............................................................................................................................. 12
Current Account:............................................................................................................................... 12
Loans:................................................................................................................................................ 13
Secured Loans: .................................................................................................................................. 14
Unsecured Loans:.............................................................................................................................. 14
Credit Cards: ..................................................................................................................................... 15
1.5 OBJECTIVES OF THE RESEARCH: ........................................................................................... 15
Primary Objective: ............................................................................................................................ 15
Secondary Objective: ........................................................................................................................ 15
CHAPTER 2 METHODOLOGY: ........................................................................................................ 16
2.1 TYPE OF RESEARCH: ................................................................................................................. 16
2.2 DATA COLLECTION: .................................................................................................................. 16
Primary Data: .................................................................................................................................... 16
Secondary Data: ................................................................................................................................ 16
2.3 SAMPLE METHOD:...................................................................................................................... 16
2.4 LIMITATIONS: .............................................................................................................................. 17
CHAPTER – 3 LITERATURE REVIEW: ........................................................................................... 18
Pilot Questionnaire: .............................................................................................................................. 20
CHAPTER 4 – RESEARCH FINDINGS AND INTERPRETATION ................................................ 24
4.1 INTRODUCTION: ......................................................................................................................... 24
4.2 DEMOGRAPHIC DETAILS:......................................................................................................... 26
4.3 PERCEPTION OF CUSTOMERS CROSS-BUYING BEHAVIOUR .......................................... 30
4.4 CUSTOMER RETENTION: .......................................................................................................... 33
4.5 CROSS SELLING BY HDFC BANK: ........................................................................................... 37
CHAPTER 5: SPSS RESULTS ............................................................................................................ 38
5.1 NORMALITY TEST: ..................................................................................................................... 38
5.2 RELIABILITY TEST: .................................................................................................................... 40
5.3 CROSS TABS:................................................................................................................................ 41
Chi-Square: ....................................................................................................................................... 41
5.4 ANOVA: ......................................................................................................................................... 43
5.5 CORRELATION: ................................................................................................................................ 44
CHAPTER 6 – CONCLUSIONS AND LIMITATIONS: .................................................................... 48
6.1 CONCLUSION: .............................................................................................................................. 48
Primary Objective: ............................................................................................................................ 48
Secondary Objective: ........................................................................................................................ 48
6.2 SUGGESTIONS: ............................................................................................................................ 49
7 REFERENCE:………………………………………………………………………………………………………………………………….48
CHAPTER 1 INTRODUCTION

1.1 ABOUT THE BANK:

The Housing Development Finance Corporation (HDFC) is an Indian Scheduled bank which
is headquartered in Mumbai. It is India’s largest private sector in terms of assets. HDFC is also
listed by the Forbes among the top 100 banks in the world. HDFC is the only Indian bank to
take its place in this list.

HDFC was incorporated in the year 1994 by Mr Aditya Puri who is now the Managing Director
of the company. In its 25 years journey the bank has 4,805 branches and 12,260 ATMs across
2,657 Cities and Towns in India. As far as cards is concerned the bank has distributed more
than 235 lakh Debit cards and 85.4 lakhs Credit cards to their customers.

HDFC bank provides a variety of bank products and services including wholesale banking,
retail banking, treasury, automobile loans, two-wheeler loans, personal loans, loan against
property, consumer durable loan etc. It also offers Insurance like Life insurance, vehicle
Insurance, Fire Insurance etc.

HDFC was one of the pioneers in launching digital banking products to its customers. Payzapp
and Smart Buy digital applications are reliable, safe, secured and they are user friendly. In order
to go with the Bank’s “Go Digital” proposition the bank started a new wing called “Digital
Transformation and Mobility Banking “was formed in the year 2014. With the help of Net
banking facility, the customers can avail personal loans within 10 seconds without any paper
work. Apart from this the Mobile Banking app allows customer to perform over 90 different
types of transaction. HDFC bank is the first bank to launch a ‘HUMANOID” in the domestic
banking space in one of its branches.

HDFC bank merged with Times Bank making it the first merger between two private banks in
India. It further went to acquire Centurion Bank in the year 2008. They acquired Centurion
Bank for 94.1 Billion INR in one of the largest mergers in Indian Financial Sector.

HDFC Equity shares are listed both in the National Stock Exchange and in the Bombay Stock
Exchange. Its American Depository Shares are listed in the NYSE and Global Depository
receipt are listed in the Luxembourg Stock Exchange where two GDRs represent one equity
share of HDFC Bank.

1.2 AWARDS & RECOGNITIONS:

2015
National Payments Excellence Awards 2015
Business Today Award
Kerala's State Forum of Bankers' Club Award
Finance Asia Awards
IDC Insights Award 2015
Qual Tech Award
Lean Sigma project competition
IDRBT Banking Technology Excellence Awards 2014-15
Finance Asia Country Awards 2015
Forbes Asia
AIMA Managing India Awards 2015
Barron's
Finance Asia poll on Asia's Best Companies 2015
J. P Morgan Quality Recognition Award
HDFC Bank wins NPCI National Payments Excellence Awards
Best CEO Award - Mr. Aditya Puri
Best Bank Branch
Best Equity Deal in Asia Award
Excellence in Customer Experience
HDFC Bank wins Award at 27th QIMPRO Convention
Best Case Study Award
Best Bank Award for Cyber Security Risk Management among Large
Banks
- Best Asian Bank
- Best Domestic Bank - India
Fab 50 Companies List for the 9th year
- Business Leader of the Year - Aditya Puri
- World's 30 Best CEOs - Mr Aditya Puri
- Best Managed Public Company - India'
Best CEO- Aditya Puri
Best Corporate Governance- Rank 3
Best Investor Relations- Rank 3
- Best in class straight Through Processing Rates
2016
Institutional Investor All-Asia Executive Team ranking
2016
Asia money FX Poll 2016
Brand Z Top 50 Most Valuable Indian Brands
CNBC-TV18 India Business Leader Awards (IBLA) 2015-
16
The Financial Express India's Best Banks Awards
IDRBT Banking Technology Excellence Awards 2016 Best Bank in Banking Technology Excellence for the year 2015-16
Cisco-CNBC TV 18 Digitizing India Awards
Dun & Bradstreet Corporate Awards 2016
The Financial Express India's Best Banks Awards 2015 - Efficiency: Rank 1
Outlook Money Awards 2015
Pension Fund Regulatory and Development Authority
awards for Atal Pension Yojana
Business Today
Barron's World's Top 30 CEOs
IBA Awards
Business Today
NABARD Award
Business Today - KPMG India's Best Bank
NABARD Award - The Best Bank in SHG Credit Linkage
in Tamil Nadu
Mr. Aditya Puri ranked Best CEO
-HDFC Bank ranked Best Company in Banks sector of Asia ex-Japan
-Ranked No. 1 in the Best Domestic Provider for FX Products and
Services in India
-Ranked No.2 in the Best Domestic Provider of FX Services and for
FX Research and Market Coverage
-Ranked No. 1 in the Best Local Cash Management Bank in India
HDFC Bank has been ranked India's most valuable brand for the 3rd
consecutive year
Outstanding Business Leader of the year
Lifetime Achievement Award to Mr. Aditya Puri
Award for Innovations in the Financial Industry & Digital Banking
HDFC Bank wins Dun & Bradstreet Corporate Award 2016 in the
Banking sector
- Profitability: Rank 1
- Strength & Soundness: Rank 1
- Best Bank of the year: Runner up
- Winner: Institutional Financial Distributor of the year
- Best Performing Bank - Maximum APY Subscribers
- Best Performing Bank in the Private sector Banks category
- Best Performing Bank: Atal Pension Yojana Carnivals in Private
Sector Banks
KPMG India's Best Banks 2015 Awards
Mr. Aditya Puri in Barron's Top 30 Global CEOs for 2nd year
HDFC Bank wins prestigious IBA Banking Technology Awards
Best Companies to Work for in India
Best Bank in JLG-Bank Linkage programme in Assam
HDFC Bank wins Bank of the year and Best Digital Banking Initiative
awards
HDFC Bank wins NABARD Award
2017
Business India 19th Best Bank survey
The Asset Triple A Country Awards 2017
Fortune
Forbes Asia's 13th Fab 50 Companies List
Forbes' List of 5 Companies That Have Shaped Asia, And HDFC Bank in Top 5 companies that have shaped Asia, and the
The World
IDRBT Banking Technology Excellence Awards 2016-17
BrandZ Top 50 Most Valuable Indian Brands
Dun & Bradstreet Banking Awards 2017
The Advertising Club Banking for Marquees 2017
Greenwich Associates study
Businessworld Digital Leadership and CIO Awards 2017 - Best Analytics Implementation Award - HDFC Bank
The Asian Banker Technology Innovation Awards 2017
CNBC TV 18 Financial Advisor Awards 2016-17
The Asset Triple A Asia Infrastructure Awards 2017
Euromoney Awards for Excellence 2017
Asiamoney Best Brands in Finance Survey 2017
Businessworld India's Best Banks' survey 2016
Dun & Bradstreet Corporate Award 2017
12th BML Munjal Awards 2017
Best Bank for the year 2017 - HDFC Bank
Best IPO, India
HDFC Bank MD Aditya Puri on Fortune Businessperson of the year
list
HDFC Bank in Forbes Asia's Top 50 List
World
1) Best Bank - Use of Technology for Fraud Prevention (Large Banks)
2) Best Bank - Cyber Security and Defense (Large Banks)
3) Best Bank - Innovative Use of Technology (Large Banks)
Ranked India's Most Valuable Brand for 4th year in a row
1. Best Private Sector Bank - Retail
2. Best Private Sector Bank - Digital Banking (Mobility)
3. Best Private Sector Bank - Asset Quality
4. Best Private Sector Bank - Overall
Best Marketer in Banking sector
HDFC Bank No. 1 in large corporate relationships, mid-market
penetration
- Best HR System Project
- Best Lending Systems Project
Best Performing Bank - Private Sector
Chemical Deal of the Year, India
India's Best Bank
Best Banking Brand in India - HDFC Bank
1. Best Bank - Overall
2. Fastest Growing Large Bank
India's Leading Bank - Private Sector
Sustained Excellence in Learning & Development
2018
The Economic Times Corporate Excellence Awards
2018
Aadhaar Excellence Awards 2018
NASSCOM AI Game Changer Awards 2018
Institutional Investor 2018 All-Asia Executive Team -
Survey
BrandZ's Top 100 Global Brands List
14th Visa Asia Pacific Security Summit
National Payments Excellence Awards 2018
Barron's World's Top 30 CEOs
Dun & Bradstreet Corporate Award 2018
Federation of Indian Export Organisation (FIEO)
Business Today Best Bank Awards
Dun & Bradstreet BFSI Awards 2018
Euromoney Private Banking and Wealth Management
survey 2018
10th BW Businessworld-PwC Best Banks' (2017) Survey - Best Large Bank
Company of the Year
• Best Performing Private Bank in Total Aadhaar Generation &
Update
• Best Performing Private Bank in Total Aadhaar Generation &
Update - In House Model
• Best Performing Branch of HDFC Bank in Total Aadhaar
Generation & Update for Kidwai Nagar Branch, Kanpur, Uttar
Pradesh.
Innovative Application in AI - Virtual Agent Engine
Ranked in four categories -
• Best IR Professional: 2nd Rank among banks in Asia (ex-Japan)
• Best CEO: 2nd Rank
• Best CFO: 1st Rank
• Best IR Company: 3rd Rank
HDFC Bank featured for the fourth time in the BrandZ's Top 100
Global Brands List
India and South Asia Champion Security Award 2018
HDFC Bank wins NPCI National Payments Excellence Awards
Mr. Aditya Puri in Barron's Top 30 Global CEOs for 4th year -
Growth Leaders Category
Best Bank
Best Bank : Export Finance - Non MSME
Bank of the Year
Best in Innovation
Best Large Bank
Fastest Growing Large Bank
India's Leading Bank - Private sector
- Net-worth-specific services (High Net Worth Clients US $ 5-30
MN)
- Asset Management
- SRI/Social Impact Investing
- International Clients
- Fastest Growing Large Bank
- Lifetime Achievement Award - Mr. Aditya Puri
2019
American Indian Foundation
Express Computer BFSI Digital Innovation Awards 2019.
The Banker Bank of the Year Awards 2018
The Banker Global Private Banking Awards 2018.
Mint - EY Emerging Technology Awards
Forbes' World's Best Banks report
Euromoney Trade Finance Survey 2019
The Financial Express India's Best Banks Awards 2017-
18
FE CFO Awards 2019
Asiamoney Best Bank Awards 2019
AIMA-JRD Tata Corporate Leadership Award 2018
Outlook Money Awards 2019
IDC Financial Insights Innovation Awards (FIIA) 2019 Asia's Most Secure Bank
Dun & Bradstreet BFSI Awards 2019
Euromoney Private Banking and Wealth Management
Survey 2019
Business Today - KPMG India's Best Bank Awards 2019
FE Best Bank Awards
Aditya Puri honoured for corporate and philanthropic leadership
Leadership Award for Outstanding Initiatives in Big Data / Analytics
Artificial Intelligence Enterprise Applications
Bank of the Year - India
Best Private Bank in India
Winner - Robotic Process Automation (Software) category.
No. 1 Bank in India - HDFC Bank
Best Service (Asian Banks only) - India
Market Leader (Asian Banks only) - India
Best Bank - New Private Sector category
Best CFO / Newsmaker of the Year
Best Digital Bank (India)
HDFC Bank MD Mr. Aditya Puri has been conferred the AIMA-JRD
Tata Corporate Leadership Award for the Year 2018
Best Private Sector Bank Award - Gold
India's Leading Bank - Private Sector
No. 1 in Asset Management category
- Bank of the Year - HDFC Bank and SBI
Best Large Bank - HDFC Bank
Best Bank: New Private Sector

1.3 CSR INITIATIVES:

One of the important initiative commenced by HDFC Bank is to improve the education
system by providing education at zero or minimum cost. ZIIEI is the largest people driven
innovation movement.
In order to improve the skills of teachers in Government Schools HDFC Bank sponsored a
program in different states starting from Uttar Pradesh. This initiative has taken place in more
than 75 districts in India. HDFC aims to spread this initiative across India in the coming
years.
1.4 CROSS PRODUCTS:
HDFC offers as many as 53 products to its customers. Some of their products include CASA,
Demat Accounts, Fixed Deposit, Recurring Deposit, Loans, Insurance, Locker facility to
certain customers etc.

Savings Account:
According to a survey taken by Economic times in 2018, almost 80% of the population in India
has bank accounts. Majority of the customers will avail this product as this is the most common
product in any bank. Savings account are generally opened by the customers to save money
which are not intended for their regular expenses. The bank or any other financial institution
provides a minimal percent of interest rate for this account. The average monthly balance for
the savings account differs from bank to bank. The bank will charge some fees if the average
minimum balance is not maintained by the customer. The banks based on the level of customer,
limit the number of transactions and withdrawals each month. The main advantage of savings
account is that it is the safest and most beneficial way to keep your liquid investments with
regular rate of interest. A typical savings account kit will contain a pass book, Debit card and
a check book with minimum check leaves. Nowadays, banks activate the net-banking facility
once their account is open.

Savings account can be opened with nil IP. It is often linked with the customer’s PAN number
so that banks can avoid fraudulent activities. The initial payments are different for each bank.
HDFC requires a minimum of 11,000 rupees to open a savings account. The bank offers only
check mode of payment for the first time.

Current Account:
Current account is mainly classified into two types.

1. Individual Current Account

2. Company Current Account.

This type of accounts is popular among companies, firms, public enterprises and businessmen
because of their high number of transactions and withdrawals from the bank. Both nationalized
and private banks offer this product to their customers. Unlike the savings account, the current
account will not yield any interest to its customers because of frequent transactions and
withdrawals. There is no restriction in number of transactions that can be made by a customer.
Banks allow high volumes of money to be deposited at a particular time. The company or an
individual can claim a POS machine for their business use when they have a current account.
In order to encourage business, banks give interest free inward remittances, deposits and
withdrawals to their current account holders. Apart from this, bank have also enabled the multi-
location funds transfer facility to these customers.

The account holders can claim loan based on their transaction history and size of their book.
The loan amount depends on these factors. An option of Overdraft is applicable to the
current account holders. With the internet banking and mobile banking option customers are
enabled to transfer funds easily.

Individual current account is commonly used by Doctors, Lawyers and other sole proprietors.
Having a current account enables the customer to use POS machine for their regular income
from their customers. Based on this transaction in the POS machine, the account holders can
claim loan from the bank.

Loans:
Loans are one of the main assets for all banks and other financial institutions. The interest paid
by the customers for their loans to the banks act as primary source of revenue for the banks. A
loan is given to an individual or a company to increase the overall money supply. HDFC offers
different types of loans according to the needs of the customer. HDFC is the leading provider
of personal loans in India. The loans given by HDFC can be customised by the customers
according to their requirements. The loan tenures, flexible interest rates and quick
reimbursements are some of the major advantages provided by HDFC to their customers. With
the help of digitalization HDFC bank now offers personal loans to their pre-approved
customers within 10 seconds with no application and documentation submission. The EMI for
a loan of 1lakh starts from just 2187 rupees per month.

HDFC Bank offers loans to its self-employed and salaried customers. The loan eligibility for
each individual differs based on the account balance of that individual. Net-banking facility
enables the customer to check for pre-approved loan. Individuals who earn more than 15,000rs
per month are eligible for applying loan.
The loans are differentiated based on the securities produced by the lender.

Secured Loans:
Loans which are backed by a collateral are known as secured loans. Housing loan, vehicle loans
and mortgages are few examples of secured loans. The collateral reduces the risk associated
with lending. If in case the borrower defaults the bank can jeopardise the customer’s collateral
to match the debt taken by them.

HDFC bank is one of the first banks to offer loans based on your Mutual Funds. This is done
in partnership with CAMS. The customer can pledge their Mutual Fund assets online and can
claim digital loan instantly from the bank. The loan amount will depend on the performance of
the Mutual funds in the market. HDFC also provides loans against shares. The customer has to
open a loan against securities account to enjoy this feature.

Unsecured Loans:
A loan which is issued and backed only by the borrower’s creditworthiness without any
collateral is referred as signature loans or personal loans or unsecured loans. The terms and
interest rate of these loans depends on the credit score of the customer. Since there is no
collateral to be pledged by the customer the risk involves in this type of loans are very high to
the banks or any financial institutions. In some cases, the bank allows the borrower to provide
a co-signer who will sign on behalf of the borrower. In such cases the co-signer’s assets will
be pledged for providing loans. He/she takes full obligation to fulfil the debt that the borrower
has borrowed.

Unsecured loans include credit cards, student loans and personal loans etc. A revolving loan is
a type of loan which has a credit limit that can be spent by the user after which they have to
repay the amount which will in turn allow them again to spend the amount. This process is
called revolving loan.

A term loan is where a borrower pays the interest in equal instalments until the loan is paid off
at the end of its term. These types of loans mostly come under secured loans but in some cases,
it is provided as unsecured loans by the banks. According to a survey in 2018, the unsecure
loans has increased exponentially and will continue to do so. The credit card balance will jump
from 840 billion dollars to 996 billion dollars by end of this year. With increase of Non-banking
financial institutions, the unsecure loans is there to increase in the market.
Credit Cards:
Credit card is a debt instrument which can be used for financial transactions in place of cash,
cheques and debit cards. Based on the credit worthiness of the customer the credit limit is set
by the banks. The interest rates from credit cards are the main way of income to the credit card
companies. The rate of interest can range from Zero percent to Thirty percent based on the
creditworthiness of the customer. Generally, credit cards are unsecured debts for the banks. It
is given purely based on past credit history of the customer.

HDFC bank provides various types of credit cards based on the customers segment. Regalia
Card is predominantly used by customers whose income is more than 1 lakh 20 thousand per
month. The maximum credit limit for Regalia card owners is 3lakhs per month. The customers
can access 6 international lounges in a year and can get up to 30000 JP points in a year.

Customers whose monthly income is at least 15000 can avail the Classic money back card. The
credit limit is between 50thousand to 1.5 lakhs. One of the benefits of this card is that it gives
a discount on fuel surcharge up to 250rs and these customers can claim card with no cost in
case the customer losses the card.

1.5 OBJECTIVES OF THE RESEARCH:

Primary Objective:
To know the customer’s perception towards cross-buying bank products.

Secondary Objective:
 To find the factors influencing the customers to remain with their existing bank.
 To know how HDFC Bank is doing their cross-selling to its customers.
 To understand the relationship between cross banking of customers and reputation of
the banks.
CHAPTER 2 METHODOLOGY:

2.1 TYPE OF RESEARCH:

Descriptive Research: The objective of this study is to provide clear understanding of the
phenomena under study.

2.2 DATA COLLECTION:

Data for any research can be collected from primary and secondary data. Primary data is mainly
collected through questionnaire, observation and interviewing people. Previous research papers
and other related documents can be used as secondary data.

Primary Data:
To find the customers perception about cross banking it was necessary to share the
questionnaire to people having bank accounts from different banks. Quantitative and
qualitative data was collected through questionnaires. The questionnaire was shared with the
customers and other bank account holders to get information.

Secondary Data:
HDFC website and HNW portal was analysed to get more information about the bank. Personal
interview with the Relationship Managers to collect data about the cross-selling activities at
HDFC bank. Similar research papers were analysed to get right results.

2.3 SAMPLE METHOD:

The self-selection or convenient method of sample collection was used to collect samples.
Questionnaire was shared to 130 account holders to understand their perception about cross-
buying products. Further to that 8 Relationship Managers were interviewed to find the
techniques of cross-selling in HDFC Bank. This sampling method was followed to get quick
response from the respondents as there was less time to complete the research process.

Since this is non-probability sampling the results found cannot be generalised to a whole
sample population. The perception might change from individual to individual.
2.4 LIMITATIONS:
 The number of respondents in this research is not adequate and the findings cannot be
traced back to the population.
 Since most of the respondents were customers visiting the branch, we cannot assume
that their response was true to their conscious
 Preliminary was not done due to lack of time for the research.
 Since the sampling method used is convenient the response might be biased.
 The response given by the Relationship Managers at HDFC may not be true.
CHAPTER – 3 LITERATURE REVIEW:

The main objective of this research is to find the perception of customers buying cross products
from their existing and other new banks. Secondary objective is to find the factors involved in
customer retention to their main banks.

In order to know the perception of customers about cross buying we need to identify the various
factors that makes them to opt for cross buying. Nidhi Grover Arora analyzed in her paper the
various drivers for cross buying by customers in retail banking in India. For the purpose of
study primary data consisting of 551 bank customers of 20 major commercial banks was used.
The study shortlisted 8 major factors as responsible for customers to opt for cross buying. The
8 factors shortlisted in the study are locational convenience, Trust, Bank’s reputation, Time
consciousness, product knowledge, switching cost, product quality and value and overall
satisfaction. From the study it was found that location, reputation, time consciousness, product
knowledge and quality had positively and significantly impacted the cross-buying intentions
of costumers. Also, its product quality and value were found to be the most influential factor
in customers cross buying decision.

The degree to which customer satisfaction influences the cross-buying behavior of customers
was studied in depth by Minal shah, Sanjay Guha and Urvashi Shrivatsava (2017). This paper
explains cross selling on basis of 2 viewpoints: Customer viewpoint and employee viewpoint.
The study concludes employees being the point of contact between the bank and customers
must be able to list out the benefit of the products in accordance with the needs of customers.
Customers seek some added benefits when they go in for purchase of new products. When the
benefits are more, customer satisfactory level increases and which in turn influences their
Cross-buying decisions.

Dong-Fei XUE explains the influence of perceived risk and perceived benefits on customer
satisfaction for buying bank products in his research paper. A step by step process wherein the
first step involves fining the relationship between perceived risk and perceived benefits on
perceived value. Then the relationship between perceived value and customer satisfaction is
studied. The findings indicate that perceived risks have direct impact on customer satisfaction.
The general perception of customers on banking industry is explained by Dr Hema
Balakrishnan in her research paper using gap analysis. The research was performed on 21
aspects that influenced customer buying behaviour out of which 14 aspects were found to have
a greater impact than the others on customer’s decision. It was found that easy access, customer
friendliness and security were the major factors customers consider before opting for a
particular bank.
Pilot Questionnaire:
CHAPTER 4 – RESEARCH FINDINGS AND INTERPRETATION

4.1 INTRODUCTION:
The primary data questionnaire was created using Google Document and the link was
forwarded to the respondents. Total of 20 questions were asked to them to know their
demographic details, their perception towards cross-buying bank products and the factors
involved in customer retention in their main bank.

Few questions were asked to the Relationship Managers in HDFC Bank to collect information
about the cross-selling techniques of different banking products to their customers.

MODELS:

REPUTAT
ION

CROSS-
BUYING

PRODUCT CONVIEN
QUALITY IENCE
 REPUTATI
ON

CUSTOMER
RETENTION

LOCATIO
SERVICE NAL
QUALITY ADVANTA
GE
4.2 DEMOGRAPHIC DETAILS:

The Pie-chart shows that the respondents were mostly men contributing over 60 percent of the
results. This also shows that the number of males visiting the banks is generally more than the
number of females visiting the bank.

Majority of the respondents belonged to the 20-28 age group. Apart from that there is an equal
split in the respondent’s age.
The respondents were mostly well educated with an Under Graduate degree or a Post Graduate
degree to their name. Very few people stopped with secondary and higher education.

As we see, the family income of the respondents were more than 10 lakhs for almost 36 percent
of the people and only a count full of people had an income of less than one lakh. This shows
that the yearly income plays a role in account holding capability of the customers.
Majority of the respondents were students and employed. Retired respondents were frequent
customers visiting the branch.

This was an important question from the research point of view. Around 45% of the
respondents had 2 different bank accounts for their use. Many people had 3 or more accounts
for their use. This shows that the respondents were open to cross-buying products from
different banks. 23% of the respondents-maintained relationship with a single account for their
business or personal use.
Almost all the respondents had a savings or current account with a bank. This can be traced
back to the population in India where around 80% of the population hold a savings account on
their name. Credit Cards are the second most preferred product from a bank with more than
45% account holders buying it. Respondents also preferred loans according to their needs.
People also preferred insurance from banks as it is more trust worthy and gives better benefits
than third party insurance companies. Locker facility is mainly used by customers who wants
to keep their gold accessories. Banks try to sell the products which will generate high profits
for them.

Most of the respondents had a relationship with a bank for four or more years. Another 31% of
the people had an account between 1 and 3 years.
4.3 PERCEPTION OF CUSTOMERS CROSS-BUYING BEHAVIOUR

As the graph clearly shows, customers consider the quality of the product before buying it from
their main banks. 42.9% of the people strongly agreed to the part that they consider the benefits
of the product promoted to them by the banks before buying it from them. Another 39% of the
people agreed that they will check the product’s benefit before buying it from the banks. 6.8%
of the people felt that their relationship with their Relationship Managers are so good that the
RM’s will promote only useful products to them. This graph overall shows that customers
accept new offers from the banks based on the quality of the product and not by the reputation
or any other factors of the banks.
More than 50% of the respondents felt that getting different products from different banks gives
them an edge to get the best offers from the banks. The customers depend on more than one
bank for getting best rates on their products.

With no surprise, almost all the respondents were annoyed by the fact that their existing bank
call their customers to promote their products. This makes the customers move from their
existing customer to get new products from different banks.
As shown in the bar graph, 70 percent of the customers agreed that they consider the bank’s
reputation that drives the customers for cross-buying products from different or same banks.
Very few people disagreed to this factor.

Customers agreed that their main bank offers their other products to its customers at a better
rate in order to improve their sales of a product.
The graph shows that more than 45% of the respondents felt that opting more products from
the same bank will make their job easy. They also felt that this will reduce the transactional
charges to a greater extent. The customers consider the convenience factor as this eases their
banking process.

4.4 CUSTOMER RETENTION:

As shown in the figure, banks generally sell their products face to face to their customers. This
includes the customers who visit the bank and purchase their product. Many private banks
provide an option where the relationship managers visit the customer in person and pitch or
activate the product. This is the most trusted way of offering a product. With the digitalisation
taking its place in the banking sector, people also preferred information about products through
E-Mail

When the respondents were asked how they would accept a new offer, close to 70% of them
said they will accept when it is sold through face to face interaction. This shows that a trust is
created when the bank employee approaches the customers to sell their products.

The graph shows that the bank’s image and reputation is one of the major factors contributing
to the customer retention in their respective banks. More than 86% of the respondents have
agreed that the interest to continue with the bank increases with the reputation and image of
the bank. This is like the results of other research where reputation and image had an impact
on customer retention.

The answer to this question was almost equally distributed. However around 32% of the people
said that the easy access to the bank in terms of location made them to maintain an account
with the bank. This could be because of the age of the customer and unawareness about the
digitalisation platform. Around 25% of the people had neutral answer about this. That means
they don’t feel any advantage or disadvantage with the location of the bank. overall the location
has a positive impact on the retention of customers in the bank
Another important factor for customer retention is the service quality provided by the banks to
their customers. Close to 52% of the respondents strongly agreed that this factor created interest
to continue with the same bank. People with more than one bank account felt that this factor is
important for any bank to retain their customers.
4.5 CROSS SELLING BY HDFC BANK:
HDFC offers more than 60 different products to their customers. A stringent target is given to
the Relationship Managers based on the experience of the individual. Each Relationship
Manager has a portfolio based on the experience of the manager. Products are pitched to these
customers for their usage.

Few questions were asked to the Relationship Managers in the HDFC Bank Mylapore Branch
on how they go about Cross-Selling their products to their customers.

1. How are the customers segmented in HDFC Bank?

Based on the account balance maintained and the income an individual gets the customers are
segmented into 3 categories

 Classic
 Premium
 Imperia

2. How do you build relationship with your customers?

Since HDFC has a plan of KYC, it is necessary for the RM’s to meet all their customers at least
once in a quarter. They also maintain their relationship with the customers by interacting with
them over phone and sending greetings on special days like birthdays to the customers.

3. How do you decide on the products to be pitched to the customer?

HDFC Bank has unique employee portal called the HNW Portal. This portal contains all the
information about the customer for the RM’s to access. The portal itself shows what are all the
products purchased by an individual customer and what other products can be pitched to them
based on the balance maintained by the individual.

4. Do you consider the need of the customer before selling?

All the RM’s said that they consider the customers need before pitching for cross-selling. This
shows that the relationship between the customer and the Manager is strong and the RM’s sell
only the products which the customers want.
CHAPTER 5: SPSS RESULTS

5.1 NORMALITY TEST:

This test is done to check if the data in the research is normally distributed. The two hypotheses
for this test are Ho: the data is normally distributed, and the alternate is data is not normally
distributed.

The Skewness value must be between -1 to +1 for a particular data to be normally distributed.

The skewness level is between -1 and +1 indicating that the data is normally distributed.
 My bank's
Image and
I consider Buying
Quality of reputation
the products The Location
service creates
quality of from reputation of the
from the interest to
a bank different of a bank bank
bank continue
product banks
with the
bank
Mean 4.34 4.19 3.47 4.14 3.8 3.94
95%
Confidence
4.19 4 3.26 4.05 3.64 3.83
Interval for
Mean
5% Trimmed
4.49 1.264 3.67 4 4 4
Mean
Median 4.45 1.124 3.52 1.189 1.693 1.267

Variance 5 1 4 1.091 1.301 1.126

Std. Deviation 0.75 5 1.451 1 1 1

Minimum 0.866 4 1.204 5 5 5

Maximum 1 1 1 4 4 4

Range 5 1 5 2 2 2
Interquartile
4 1.611 4 4 -0.545 0.263
Range

SKEWNESS -1.741 -1.455 -0.401 -0.977 -0.743 -0.835

Kurtosis 3.814 4.07 -0.68 3.57 4.27 0.263

5.2 RELIABILITY TEST:

This test is done to prove that the data collected is reliable for research. Cronbach's alpha is the
primarily used to find the internal consistency of the data obtained. It is commonly used when
there are Likert scale questions in the questionnaire. This shows whether the data in the scale
is reliable or not.

When the value of Cronbach’s Alpha is less than 0.7 the given data set is said to be reliable.

Cronbach's Alpha Based on Standardized

Cronbach's Alpha No. of Items
Items

0.604 0.625 9

The cronbach’s Alpha value is lesser than 0.7 showing us that data set presented is reliable. All
the Likert scale type of questions were tested for reliability.
5.3 CROSS TABS:
Chi-Square:
Chi square test is done to find the relationship between two independent variables. The
variables identified are two different categorical variables.

Ho: When p value is more than 0.05. Variable 1 is independent of Variable 2

Ha: When p value is less than 0.05. Variable 1 is dependent on Variable 2.

The first comparison of variables from the data is

Respondents Age VS Location of the bank:

Asymp.Sig.(2-
Value df
sided)
Pearson Chi-Square 49.939a 20 .000
Likelihood Ratio 53.868 20 0
Linear-by-Linear
5.976 1 0.015
Association
N of Valid Cases 131

The results show that there is dependency between the customer’s age and the location presence
of the bank.

Since the value of Pearson Chi-Square is less than 0.05 it shows that there is a dependency
between the two variables.

P value less than 0.05, reject Ho.

Therefore, the age of the respondents and the fact that the location of the bank made the
customers buy more from the same bank has a relationship and dependent on each other.
How did the banks offer their products vs How customers want the products to be sold?

Chi-Square Tests

Asymp. Sig.
Value df
(2-sided)

Pearson Chi-Square 68.859a 16 .000

Likelihood Ratio 35.706 16 0.003

Linear-by-Linear Association 22.032 1 0

N of Valid Cases 131

a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .03.

Since the p value is lesser than 0.05, we reject Ho.

This shows that there is a dependency between the two variables. How customers prefer the
products to be sold is related to how in general banks sell their products.
5.4 ANOVA:
ANOVA test is done to find whether the means of two different variables are significantly
different from each other. It checks the impact of the variables by comparing the means of the
variables respectively. The variables compared are independent variables.

LOCATION OF THE BANK MADE ME GET MORE PRODUCTS

Sum of Squares df Mean Square F Sig.

Between Groups 28.711 4 7.178 4.726 .001

Within Groups 191.350 126 1.519

Total 220.061 130

The table shows that the significance value is less than 0.05. This shows that the means are
significantly different between groups and within groups. It gives us that the means are not
same among different variables.

BUYING PRODUCTS FROM DIFFERENT BANKS GIVES ME BETTER DEALS

Sum of Squares df Mean Square F Sig.

Between Groups 3.838 5 .768 1.024 .006

Within Groups 93.703 125 .750

Total 97.542 130

The table shows that the significance value is less than 0.05. This shows that the means are
significantly different between groups and within groups. It gives us that the means are not
same among different variables. This variable was compared with the number of years an
individual had an account with their main bank.
5.5 CORRELATION:

Bivariate correlation is done to find the strength of relation between same pairs of variables in
a population. The Pearson Correlation shows us if there is any statistical linear relationship
between same pairs of variables in the population.
The table below shows that there is a correlation between the Reputation of the Bank and the
customer’s choice of opting more products from the same bank for the ease of transaction.
 My main Will you
I will Frequent
The bank move
accept Opting calls
reputation offers from
How did a new for from the
of a bank good your
the bank offer multiple existing
drives me deals to main
offer from products bank to
to buy their bank if
their the from the promote
more existing other
products bank if same their
products customers banks
to you? it is bank is products
from the to take offer you
sold easy annoys
bank other better
through me
products deals?
How did Pearson
1 .412** -.199* -0.101 -.200* -0.076 .203*
the bank Correlation
offer their Sig. (2-
0 0.023 0.251 0.022 0.391 0.02
products to tailed)
you? N 131 131 131 131 131 131 131
I will Pearson
.412** 1 -0.17 0.022 -0.067 -0.011 -0.041
accept a Correlation
new offer Sig. (2-
0 0.052 0.802 0.449 0.9 0.642
from the tailed)
bank if it is
sold N 131 131 131 131 131 131 131
through
The
Pearson
reputation -.199* -0.17 1 .371** .522** 0.08 -0.1
Correlation
of a bank
drives me Sig. (2-
to buy tailed) 0.023 0.052 0 0 0.361 0.254

more
products
N 131 131 131 131 131 131 131
from the
bank
My main
Pearson
bank offers -0.101 0.022 .371** 1 .272** -0.111 -0.053
Correlation
good deals
to their
Sig. (2-
existing 0.251 0.802 0 0.002 0.205 0.547
tailed)
customers
to take
other N 131 131 131 131 131 131 131

products
Opting for Pearson
-.200* -0.067 .522** .272** 1 0.068 -.224**
multiple Correlation
products Sig. (2-
0.022 0.449 0 0.002 0.442 0.01
from the tailed)
same bank
N 131 131 131 131 131 131 131
is easy
Frequent
calls from Pearson
-0.076 -0.011 0.08 -0.111 0.068 1 -0.125
the Correlation
existing
bank to Sig. (2-
0.391 0.9 0.361 0.205 0.442 0.155
promote tailed)

their
products N 131 131 131 131 131 131 131
annoys me
Will you
Pearson
move from .203* -0.041 -0.1 -0.053 -.224** -0.125 1
Correlation
your main
bank if
other
Sig. (2-
banks offer 0.02 0.642 0.254 0.547 0.01 0.155
tailed)
you better
deals?
CHAPTER 6 – CONCLUSIONS AND LIMITATIONS:

6.1 CONCLUSION:
The research identified various factors to analyse the perception of customers toward Cross-
Buying and to find the different factors which impacted customers for retaining in the same
bank. The research also analysed HDFC Bank’s techniques towards Cross-Selling products to
their customers.

Primary Objective:
TO UNDERSTAND THE PERCEPTION OF CUSTOMERS TOWARDS CROSS-
BUYING BANKING PRODUCTS.

To analyse the thought process of customers in the Chennai locality towards cross-buying
products, the factors which influence are the Bank’s Reputation and Image, Quality of the
project, Convenience of the individual were assessed. Out of these factors the quality of the
product and the reputation of the bank has a positive impact on the perception of the customers
towards cross-buying products. Most of the respondents trusted their main bank for buying
their products thus showing the trust factor and satisfaction.

The ease of opting more products from the same bank led the respondents to get more products
from the same bank. We can relate this with the fact that most of the respondents stayed with
their main bank for four or more years.

Secondary Objective:
TO FIND THE FACTORS INFLUENCING THE CUSTOMERS TO REMAIN WITH
THEIR EXISTING BANK.

The influence of reputation of the bank, locational convenience, quality of the service and other
factors was analysed to find the retention of customers in their banks. All these factors had a
positive impact on the customer retention. The majority of the respondents were influenced by
the Reputation of the banks and the location convenience factors. Respondents also considered
the factor of quality of service for maintaining a healthy relationship with the banks. Customers
at HDFC Bank have a good relationship with the relationship managers thus helping the bank
to retain their customers.
TO KNOW HOW HDFC BANK IS DOING THEIR CROSS-SELLING TO ITS
CUSTOMERS.

HDFC Bank has unique employee portal called the HNW Portal. This portal contains all the
information about the customer for the RM’s to access. The portal itself shows what are all the
products purchased by an individual customer and what other products can be pitched to them
based on the balance maintained by the individual. Since HDFC has a plan of KYC, it is
necessary for the RM’s to meet all their customers at least once in a quarter. They also maintain
their relationship with the customers by interacting with them over phone and sending greetings
on special days like birthdays to the customers.

6.2 SUGGESTIONS:
 Since most of the customers consider reputation as one of the key factors for retaining
in their banks, bank employees should build their brand reputation.
 Since quality of the product was considered important for buying a product from the
bank, banks should offer good quality products based on the needs of the customers to
improve their cross-buying capacity.
 Banks should offer the products to their customers in person because majority of the
customers preferred face to face transactions.
 Banks should work on their cross-selling techniques as most of the customers were
annoyed by the frequent promotion calls by the bank’s employees to the customers.
 The Relationship Managers in HDFC should be in constant touch with their customers
to provide good service to them.

7. REFERENCE:

 https://airccse.com/ectij/papers/1115ectij03.pdf for understanding the customer’s

perception about cross-buying products.
 http://www.isca.in/IJMS/Archive/v6/i8/6.ISCA-RJMS-2017-072.pdf to know the
factors customers consider important for retention in their respective banks.
 https://www.arcjournals.org/pdfs/ijmsr/v3-i2/2.pdf
 https://www.scribd.com/doc/18544537/A-Study-on-Customer-Perception-in-Banking-
Industry-Using-Gap-Analysis to know customer behaviour in the banking industry.
 HDFC Bank Website.
 HNW Portal in HDFC Bank.
 https://www.emeraldinsight.com to know the customer involvement in retail banking.
 Research paper on customer retention at Birmingham University.
 HDFC Employee portal to know the portfolio assigned to each manager.