The sale includes performing and non-performing residential mortgages and unsecured loans from the legacy book of NRAM, the former Northern Rock mortgage business, UK Asset Resolution Ltd (UKAR) said.

UKAR, a state-run 'zombie bank' that does not take on new business, said the sale brought its balance sheet reduction to 73.5 billion pounds, or 63 percent since formation in 2010.

The bank was advised by Credit Suisse International, a subsidiary of Credit Suisse AG.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier)