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.
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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.
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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.
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rnUnder the earlier restructuring deal, Peoples Bank was expected to transfer about Rs. 12 bn of its dud loans to the Asset Management Co.
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at net book value.rn
rnBut the transfer also took into account a private capital infusion, which Jayasundara says does not fall in line