DBS. FID. No. C-15 / 01.02.00 / 2002-03

May 30, 2003

The CEOs of the all-India Term Lending and Refinancing Institutions
(Exim Bank, IDBI, IDFC Ltd., IFCI Ltd., IIBI Ltd., NABARD, NHB, SIDBI and TFCI Ltd.)

Dear Sir,

Revised guidelines for compromise settlement of chronic Non Performing Assets (NPAs)

Please refer to our Circular DBS. FID. No. C-13 / 01.02.00 / 2002-03 dated February 04, 2003 enclosing therewith DBOD Circular No. BP. BC. 65 /21.04.117 / 2002-2003 dated January 29, 2003 on the above subject.

2. In terms of paragraph 3(A)(i)(e) of the aforesaid DBOD Circular, the last date of receipt of applications from borrowers was as at the close of business on April 30, 2003 and the processing of applications under the revised guidelines was to be completed by October 31, 2003. We advise that it has since been decided to extend the last date for receipt of the applications under the revised OTS Scheme from April 30, 2003 to September 30, 2003 and the date of completion of processing of the applications from October 31, 2003 to December 31, 2003.

3. Please acknowledge receipt.

Yours faithfully,

(Rajesh Verma)
General Manager-in-Charge