Please refer to BSD Circular No. 10 dated October 20, 2009 and Prudential Regulation R-8 for Corporate and Commercial Banking, Prudential Regulation R-11 for Small and Medium Enterprises Financing, and Prudential Regulation R-22 for Consumer Financing.

2. It has been decided to extend the benefit of Forced Sale Value (FSV) of mortgaged residential/commercial/industrial land (open plot, and where building is constructed separate valuation of land must be available ) held as collateral against NPLs, from three years to four years from the date of classification of that particular loan / facility. However this benefit would be available in such cases where FSV valuation of land is not more than four years old. Accordingly, the amended Prudential Regulations are attached herewith.

a) PR-8 (Para-4) and Annexure IV and V of Prudential Regulation for Corporate and Commercial Banking

b) R-11 (Para-4) and Annexure III and IV of Prudential Regulation for Small and Medium Enterprises Financing

c) Regulation R-22 of Prudential Regulation for Consumer Financing (Housing Finance)

3. All other instructions on the subject matter remain unchanged.

Please acknowledge receipt.

(Enclosure: As above)