How RBI plans to revive PMC Bank through a three-pronged strategy

In a first, DICGC to be roped in to fund revival; RBI to open credit line to tide over liquidity issues; minimum capital from promoter to meet 9% capital adequacy ratio; 3 investors submit final offer

The mechanism to revive troubled lender Punjab and Maharashtra Cooperative (PMC) Bank having entered the last leg with the deadline for a final offer from prospective suitors expiring on Monday, the Reserve Bank of India (RBI) is devising a three-pronged approach for a reconstruction of the multi-state cooperative bank.

If the revival formula works as planned, it will be the first time in recent years that the Deposit Insurance and Credit Guarantee Corporation (DICGC) will have been roped in for the revival of a stressed bank. 

According to highly-placed central banking sources, DICGC will offer the bank liquidity support in