Citigroup's Diners Club card brand in Japan is among assets drawing interest from lenders as the bank seeks bids for its retail operations in the country, people with knowledge of the matter said.

Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Trust Holdings and Shinsei Bank are among banks preparing to submit preliminary bids, said the people, who asked not to be named. Citigroup is gauging interest in the consumer bank separately or as a package with the card unit, the sources said.

Citigroup, whose 33 branches in Japan represent less than 1 per cent of its global total, is scaling back in the country as near-zero interest rates, tepid loan demand and slowing economic growth hamper profitability. Japanese banks may be attracted to the credit unit to obtain wealthy Diners Club members, said Toyoki Sameshima, a senior analyst at BNP Paribas.