According to the Financial Times, Branson met Lloyds chief executive Antonio Horta-Osorio and assured him of his firm’s interest.
"This can happen quickly and smoothly," Branson told the Financial Times. "We are a serious bidder and can give the government what it wants through competition."
According to the Financial Times, Virgin Money has held talks with a handful of British and US investors and expects to have financing of up to £3bn in place by the end of July.
The purchase of the branches would turn Virgin Money into the UK’s sixth largest bank.
In November 2009, part nationalized Lloyds was told by government-appointed Independent Commission on Banking that it had four years to sell at least 600 branches.
Lloyds Banking Group’s branch sale could also attract bids from retailer Tesco’s finance arm, new bank venture NBNK and National Australia Bank.
British regulators have prohibited the largest UK banks from bidding on competition grounds.
