The relation between the distillability of entanglement of three bipartite reduced density matrices from a tripartite pure state has been studied in Hayashi and Chen 2011 Phys. Rev. A 84 012325. We extend this result to the tripartite mixed state of rank at most three. In particular we show that if the state has two bipartite reduced density operators with rank two, then the third bipartite reduced density operator additionally having non positive partial transpose (non-PPT) is distillable. In contrast, we show that the tripartite PPT state with two reduced density operators of rank two is a three-qubit fully separable state. We obtain these facts by proving a conjectured matrix inequality for the bipartite matrix M with Schmidt rank at most three. This is one of the main results of this paper. We also prove it for some M with arbitrary Schmidt rank.