NAB o/s banking plan turns sour

NAB’s ambition to build its British business could be put on hold as speculation mounts that the Royal Bank of Scotland (RBS) may sell its assets to Northern Rock instead.

RBS, which remains 84 per cent nationalised, is being forced to sell 318 of its retail branches under its NatWest brand as part of a government rescue package.

According to a report in The Australian, Nab was considered to be a serious contender to buy some of the RBS assets, however, Northern Rock bank is now standing in its way.

Northern Rock’s potential deal to buy the RBS assets is understood to be supported by Britain’s labour government, and the bank is keen to build a High Street banking presence.