Lord Levene has accused the Lloyds Banking Group and the Government for acting in `bad faith' in the process to auction more than 600 branches of the bank in the UK.

Lord Levene, who is a former chairman of NBNK Investments that bid to acquire the branches, told MPs on the Treasury Select Committee Lloyds was "swayed by political considerations" in its decision to sell the branches to the Co-operative Bank. The "Project Verde" process, which led to a £1.5 billion hole in Co-op Bank's finances, was a result of a directive form the European Commission that required the bank to sell branches in return for Lloyds's taxpayer bailout.

TSB has been set up with the branches and has become the eight largest high street bank in the country. The bank was launched again as a separate entity about 18 years after it was merged with the Lloyds Banking Group. The bank's focus on individual and small business customers will help it create a more trusting image in the market.

UK government might be planning to sell its stake in the Lloyds banking group in 2014. UK Financial Investments (UKFI), the Treasury unit that manages the government had sold 6 per cent of the issued share capital of the banking group in the market. The UK government has raised about 3.2 billion pounds or about $5.28 billion during the month of September, 2013. The UK government has about 33 per cent stake in the banking group and is planning to sell its stake in the group.