KBC testing interest in its private banking ops -paper

BRUSSELS Nov 3 (Reuters) - Belgian banking and insurance group KBC (KBC.BR) is scouring the market for potential buyers of its European private banking activities, Belgian daily De Tijd reported on Tuesday citing sources.

KBC was not immediately available for comment.

KBC is one of many banks to have submitted restructuring plans to the European Commission, the EU's executive arm, and could be asked to divest its private banking assets in return for receiving state aid.

The group received 7 billion euros ($10.34 billion) in state aid to help it through the global financial crisis.

De Tijd said JP Morgan was gauging buyer interest for KBL European Private Bankers and cited Swiss private bank Julius Baer BAER1.VX and France's Societe Generale (SOGN.PA) as potential candidates.

It added however that the work JP Morgan was carrying out would not necessarily result in a sale of the activities. That would depend on the group's agreement with the European Commission, which is expected before the end of November, De Tijd said. ($1=.6769 euros) (Reporting by Antonia van de Velde; Editing by Mike Nesbit)