In May, the central bank had asked banks having an exposure in IFCI to transfer all their investments to the available-for-sale (AFS) category from the held-to-maturity (HTM) category by the end of June 2007.
However, following a representation from the banks, the banking regulator had allowed the banks to spread the additional hit they would take over four quarters on a pro rata basis, according to the market value at the end of each quarter, so that the full provisions are made by March 31, 2008.
Of the Rs 3,057 crore exposure, the banks have investments of Rs 1,071 crore in IFCI
