Tel Aviv-based Bank Leumi Le-Israel is reportedly weighing a divestiture of its US banking unit.
The sale of Bank Leumi USA, if materialised, could rake in $1bn, reported Bloomberg citing people familiar with the issue.
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At present, the lender is working with a financial adviser to seek parties interested in the unit, which had five branches, $7.2bn in assets and around $6bn in deposits at the end of last year.
The report however, added that the discussions are at an initial phase and the plans for the sale could be scrapped as well.
Bank Leumi did not give any official confirmation on the matter.
The bank reviews options for the US division as part of an investment agreement with minority shareholders Endicott Management as well as MSD Capital.
Last November, PNC Financial Services Group signed a definitive agreement to buy the US unit of Spanish banking group BBVA.
PNC agreed to pay $11.6bn in cash for the acquisition of BBVA USA Bancshares, including its US banking subsidiary BBVA USA.
Meanwhile, earlier this year, it was reported that HSBC will pull the plug on its retail banking operations in the US as part of its strategy to shift focus towards Asia and reduce costs.
HSBC, which has been struggling in the US market, has already closed 80 branches last year and planning to sell or close the remaining 150 retail branches in the US.
