ATHENS: National Bank, one of Greece's four largest lenders, has completed talks to sell its insurance unit to private equity fund CVC Capital, a banking source close to the procedure said on Wednesday, adding that the bank's management backed the sale.

"Discussions with CVC have been concluded. The bank's management and board agree that the sale of the insurance arm to CVC should proceed," the banker told Reuters, declining to be named.

He said the sale still needed the blessing of National Bank's main shareholder, Hellenic Financial Stability Fund, the bank rescue fund which has a 40% stake.

"NBG is awaiting the stance of the HFSF on the issue. The HFSF fund will need the advice of an independent investment adviser on the sale," the banker said.

The HFSF was not immediately available for comment.

National Bank declined to comment.

Private equity group CVC Capital, with $109 billion of assets under management, was the only bidder for NBG's wholly-owned insurance unit and submitted a binding bid one year ago.

The sale is part of NBG's EU-approved restructuring plan to shed non-core assets. The bank has sold assets in the Balkans, including operations in Bulgaria, Albania, Romania and Turkey, downsizing to focus on its core domestic banking business.

NBG had tried unsuccessfully to sell the insurance unit in previous years. In 2018 it ended talks with Shanghai-based Gongbao Group to divest a majority stake in National Insurance.

Before that, a deal to sell 75% of the unit to US fund manager Calamos Investments and EXIN Partners for 718 million euros ($871.72 million) turned sour after a legal row erupted between the two buyers.