Hi kartheesh,
See, there are many ways of doing it. I am going to tell you the simplest method assuming that you have put autogeneratecolumns to false. This means that you are showing selected fields using
<%#Eval("")%>
or some other method.
<asp:DropDownList ID="ddl1" runat="server" DataSourceID="SqlDataSource1" DataValueField="Status" AutoPostBack="True" SelectedValue='<%# Convert.ToInt32(Eval("Denied")) == 1? "1":"0" %>' >
</asp:DropDownList>
I think, this would solve your problem
Anurag