The Royal Bank of Scotland has rejected a bid from a joint proposal from U.S. equity firms JC Flowers and Apollo as the bank begins to narrow the bidding shortlist.

The bidding process, which stems for RBS’ need to sell 315 stores as part of the conditions the bank accepted with a £45.8 million government bailout in 2008,

Bidders are expecting to be contacted over the following days with information on the status of bids.

Plans for a sale to Santander collapsed last October and RBS have said that a sale of the business is now unlikely to be finalised by the end of the year, moving to ask European regulators to extend the deadline from December 2013.

RBS set aside £450 million for IT maintenance

RBS says that UK government will be able to sell stake by mid 2014