Richard Branson’s Virgin Money plans to make a bid for 600 Lloyds branches as he attempts to grow his company’s presence on the high street

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According to the Financial Times, Branson met Lloyds chief executive Antonio Horta-Osorio earlier this week and plans to make a formal bid for the branches in July.

‘This can happen quickly and smoothly,’ Branson told the paper. ‘We are a serious bidder and can give the government what it wants through competition.’

The purchase of the branches would turn Virgin Money into the UK’s sixth largest bank but the Independent Commission on Banking has recommended forcing Lloyds to dispose of more branches under state aid rules.

‘We appreciate what the commission is saying but we don’t want to delay the process,’ said Branson. ‘We think we can build a formidable competitor with 600 and would almost rather they didn’t muddy the water.’

MPs on the Treasury Select Committee are pushing for greater competition in the banking sector. TSC member Andrea Leadsom told the paper: ‘There should be dozens of banks, not just four or five.’

It is thought Virgin Money has approached financial institutions and private equity companies about raising capital of up to £3 billion to fund the purchase of the branches.