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Mumbai, Jan. 11

The management and staff members of Dena Bank have reached an agreement to promote new business. Under this agreement each staff members will canvas for five new savings bank accounts and one current account every week and meet at least five existing customers every fortnight.

It is the first time that staff of any public sector bank has made formal and specific commitments for customer acquisition and development of new business, said a press release from the bank.

The release quoted Mr M.V. Nair, Chairman and Managing Director of Dena Bank, as saying, "The bank is encouraged by extremely favourable response it is able to get as seen from the recent commitment shown by the staff."

Thanks to the deposit mobilisation efforts, the cost of deposits in the bank reduced from 7.23 per cent in 2001-02 to about 4.48 per cent at the end of December 2005 amidst hardening of interest rate in other financial institutions in the recent period, the release said.

Similarly, low cost deposits have increased from about 39 per cent in March 2002 to about 46.70 per cent in December 2005.

(This article was published in the Business Line print edition dated January 12, 2006)
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