In a bid to achieve its targets and improve business prospects, the bank is all set to introduce `any branch banking' concept in the near future and has already procured 25 very small aperture terminals (V-Sats) as well as leased lines from the MTNL.

In an exclusive interview with The Finanncial Express, the chairman and managing director of the bank, Ramesh Misra disclosed that in the first phase of modernisation of the bank 35 branches in Mumbai and Ahmedabad would be connected. The modernisation programme was being undertaken with the assistance of a World Bank provided $7 million loan.

"The bank is planning to connect many more centres across the country in a phased manner," Misra said.

In the second phase of modernisation, to be executed by March 31,2000, Dena Bank plans to cover as many as 350 branches located in 50 centres as part of its `any branch banking' concept. Commenting on the low credit-deposit (CD) ratio of around 48 per cent in Gujarat against the Reserve Bank stipulation of 60 per cent, Misra said this was a fallacy since "the concept of CD ratio has changed and conventional instruments have been replaced by new finance instruments like commercial papers, non-convertible debentures and bonds."

"The credit flow into the state is not less by any yardstick and neither are the Gujarat industries suffering on account of fund paucity," the Dena Bank CMD said.

According to him, the total direct bank finance into the state as on March 31, I999 was a whopping Rs 21,000 crore of which Rs 3,721 crore was by way of CPs, NCDs and bonds, Rs 2,550 crore was through loans from outside banks to Gujarat-based idustries while another Rs 480 crore was through the rural infrastructure development funds routed through Nabard. "The CD ratio in Gujarat worksout to 64 per cent which is 4 per cent more than RBI stipulations," Misra claimed.

At the same time, the Dena Bank CMD acceded that banks and financial institutions in the state had adopted a cautious lending approach of late on account of mounting non-performing assets. However, he was optimistic about the growth of business prospects for the banking sector in the ongoing fiscal.