State-backed UK bank Lloyds said it remained in exclusive talks with shops to banking group The Co-Op to sell it 632 bank branches, after receiving a new proposal from start-up NBNK.

The group acknowledges receipt of a letter outlining an indicative revised proposal from NBNK, Lloyds said in a statement. However, we continue to negotiate solely with the Co-Operative Group and are continuing to prepare for a divestment through an initial public offering (IPO).

It decline to comment further.

(Reporting by Steve Slater; Editing by Jon Loades-Carter)