The authorities in the UK have announced that beginning of the stake sale in the Lloyds Banking Group about five years after the taxpayer's money was used to rescue the banking giant.

UK Financial Investments (UKFI), the Treasury unit that manages the government stakes in Royal Bank of Scotland and Lloyds Banking Group, has said that it is planning to sell 6 per cent of the issued share capital of the banking group in the market. Chancellor George Osborne had indicated that the government will soon start selling its holding in the Lloyds Banking Group. It is not know as to how much of the Government's 39 per cent stake in the bank will be sold.

Some suggest that the government might sell its stake gradually in the bank, which is valued at about £17 billion. Osborne announced in his Mansion House speech on 19 June that the government is considering selling stake in the Lloyds Banking Group. He did not announce the time frame for the stake sale but said that first block of share will be offered to the institutional investors.

The Treasury said in a statement, "We want to get the best value for the taxpayer, maximise support for the economy and restore them to private ownership."