HSBC and other banks have approached RBS and its advisors about the auction after Standard Chartered's exclusive negotiations with RBS expired recently, the sources said.

RBS is selling its retail and commercial banking divisions in China, India and Malaysia, worth "a few hundred million" dollars, according to a source, the news service said. Previous reports put the value at $200 million.

Along with Lloyds Banking Group, RBS has received billions of pounds of taxpayers’ money to shore up its capital strength after last year’s financial crisis. RBS owns a number of businesses including Coutts, the UK private bank, and its sister international wealth management arm, RBS Coutts. The news agency’s report made no mention of wealth management services being affected by any transaction with HSBC, however.