NBNK has issued 50 million shares at 100 pence each on the Alternative Investment Market (Aim). It will use this money to help open between 400 and 600 branches in the UK, accounting for between 4% and 6% of the market, the group said.

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High Street Banking Business NBNK Takes Center Stage

Reports suggest it will look to buy some of the 600 branches that Lloyds is being forced to sell by the European Commission as a condition of the government bail-out.

As well as Lord Levene, NBNK board members include former Treasury Committee head Lord McFall and Sir David Walker, who recently conducted a review of the UK banking sector for the government.

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

"Admission [to Aim] marks the completion of the first stage of our plans. We will now establish a dialogue with a number of sellers of assets which would fit our acquisition profile."