Chancellor George Osborne has indicated that the government will soon start selling its holding in the Lloyds Banking Group.

It is believed that Osborne will announce in his Mansion House speech on 19 June, the government plans to sell stake in the banking group. IT is now know as to how much of the Government's 39 per cent stake in the bank will be sold. Some suggest that the government might sell 10 per cent stake, which is valued at about £17 billion, in the bank within this year.

Under the plans, the government is expected to offer bank shares to the general public at a discounted rate like those offered to institutional investors and it will also offer incentives for holding on to the shares for a longer term.

Meanwhile, Jessica Harper, the former head of online security at Lloyds Banking Group was served with a jail sentence of five years for stealing £ 2.5 million from the bank at a time when it was receiving bailout assistance from the government.

Osborne is also expected to announce plans to sell its stake in RBS.