Experts from Indian Bank are flying in next month to help out with giving alternate proposals to revamp the technically insolvent Peoples Bank.
The Indian bank became a natural choice, after it opted to restructure itself, sans any form privatisation or capital infusion from the State.rn
rn”We have had a few discussions with the Indian bank and their officials will come here during the second week of July to share their knowledge with us and make their proposals for a turnaround,” Treasury Secretary Dr. P B Jayasundara told reporters on Monday.rn
rnDr. Jayasundara said the government is keen on lquote neutrality of ownership, though plans to transfer its dud loans to a separate debt recovery agency, has not been ruled out.rn
rnUnder the earlier restructuring deal, Peoples Bank was expected to transfer about Rs. 12 bn of its dud loans to the Asset Management Co. at net book value.rn
rnBut the transfer also took into account a private capital infusion, which Jayasundara says does not fall in line