Addressing shareholders at the bank's annual general meting (AGM) in Mumbai on Friday, Dena Bank chairman-cum-managing director Ramesh Mishra said the bank is awaiting RBI approval on the proposed preferential share issue.

Banks are required to maintain 9 per cent as capital adequacy ratio in March 2000, up from the current 8 per cent level.

The bank has entered into an agreement with Union Bank of Switzerland AG and Commerzbank International, Luxembourg, for its gold business. Though the bank was allowed by RBI to import and trade in yellow metal last year, it is yet to make a foray into gold business. In terms of volume, the bank is looking at a total business of Rs 3,000 crore through gold trading in the currentfiscal. "To start with, we will do business only on consignment basis," said a Dena Bank official.

The bank is also framing a gold-deposit scheme. It is planning to open five branches in Mumbai, Calcutta, Chennai, Delhi, Ahmedabad and Rajkot to conduct bullion business.

The bank has devised an internal rating system to improve employee branch productivity and customer service at its various branches. For the current fiscal, the bank plans to open 25 branches which will take the total number of branches to 1191.

The bank has created two additional posts of general managers and has designated one general manager to look after the corporate business of the bank as per the recommendation of international consultants KPMG. "This will facilitate the medium and large corporate clients to sort out their difficulties faster and the bank will be in a position to bestow personalised services to its clients and cut down decision making time," Mishra said.

The bank has entered into an agreement with NationalSecurities Depository Limited (NSDL) and central Depository Services (CDS) as an issuer company for dematerialisation of bank's shares.

The bank registered a net profit of Rs 110.09 crore for the fiscal 1998-99, up from Rs 105.04 crore in the previous year. The earning per share of the bank increased from Rs 5.08 to Rs 5.32 whereas book value improved from Rs 24.37 to Rs 26.54 during the year.