The UK-listed Lloyds Banking Group, which counts private banking among its business lines, is in sales talks of up to £300 million ($490 million) regarding its Insight Investment Management fund manager, according to the Financial Times.

The bank acquired the Insight Investment business when it bought HBOS earlier this year. The report said that Abdallah Nauphal, former chief executive of Insight and current Lloyds managing director of asset management, is leading a team to buy Insight's third-party fund business.

Lloyds Banking Group is among a number of UK financial institutions – such as Royal Bank of Scotland – that have received billions of pounds in public funds following the credit crunch.

Earlier this week, the group said it would cut 1,660 jobs in the coming months but, at least for now, private banking roles are not thought to be at risk.