NBNK Investments is converting into new banking business and has raised £50 million from Initial Public Offering to carry on the operations of 600 branches in the UK. The venture is an initiative of Lloyd's of London Chairman, Lord Levene and Sir David Walker, who appraised the corporate governance in the UK banking industry recently.

Lord Levene said, "The investment community, the public and the regulators have welcomed the potential for an institution such as the one we propose".

The money secured would be used by the entity to purchase the branches of existing banks and it is expected that the first deal will be struck within the coming 18 months. As planned, the concern will buy parts of nationalized bank Northern Rock, along with the 600 branches of Lloyds Banking Group. With such a network, the venture will cover the market between 4% and 6%.

As initially, the group will foray into retail banking and banking services for small and medium sized Companies and will gradually start serving wealth management services. It would also offer services like net banking and telephone banking.

The bank thinks that it will have an upper edge over other banks, as it possesses no past of problems of liquidity crisis and as the business of major banks have reduced by 43% compared to the 1980s, the bank hopes to impel business by providing personalized banking.

The bank has been expected to retain its name as its investment Company’s name. It has made its place in AIM market by listing of its 50 million shares at 100p each.