From the type of pot you are using, I suspect that root rot has set in. The pup growth was a survival attempt by the plant. The center stem & cigar leaf slowly dying is the first signs.
This is what I just posted in an another thread:
Did my banana plants come with panama and sigatoka diseases
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Originally Posted by edwmax
You are using 'self watering pots'. These trap and hold water in the bottom of the pot which will stagnate causing root rot to set in. ... Bananas need fresh water, so their pot must drain to saucer and excess water removed. Your potting mix needs to be 50%/50% potting soil and perlite for a very fast draining to remove excess water.
Also, your pots need to be bigger and about 1.5 -2 Xs deeper than wider. The bigger pots hold more soil which in turn hold more moisture & AIR within. FILL THE pots COMPLETELY with potting mix, not half full. ... The deeper pots will allow more root growth which is more downward than outward. ... Once roots are established the plant growth will take off.
The cheap black plastic nursery pots are really ideal for bananas. These can be covered with decorative warp or simple set into a larger decorative pots if you must & in the house.
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I would repot the mother/problem plant inspecting and cleaning the roots if needed. ... If the roots show signs of root rot, repot in course builders sand. Then hope for the best. Root rot is hard to stop once set in.