How the Government bowled SLR to stump SBI

I feel it would be best to explain this story in points.

1. SBI releases a rights issue.
2. Government is interested in buying the issue and makes payment in the form of government bonds (G-Secs)
3. The value of the bonds is 9996 crores.
4. Now these bonds do not enjoy the SLR status, which means as per the Indian banking regulations these cannot be held till maturity.
5. Only the G-Secs that have SLR status can be held till maturity and all the other bonds are callable before their term expires.
6. Since these bonds do not have SLR status, they cannot be held till maturity and there value is assessed using mark-to-market method.
7. For for bonds, the yield and price are inversely related. Due to the tough economic conditions the interest rates of the G-Secs have risen and the price has fallen.
8. So, the bonds that are held by the SBI, according to M-to-M method, have fallen in value.
9. This fall in value is around 700 crore.
10. SBI is now reuqesting government to give these bonds the SLR status so that they are held till maturity and theire value does not fall.