Barclays PLC (BCS) said Monday that it will buy the banking operations of U.K.'s Standard Life PLC (SL.LN) for GBP226 million in cash, as the bank continues to expand its retail and commercial operations.

Barclays will acquire a savings book of GBP5.5 billion as of June 30 and a mortgage book with outstanding balances of about GBP8.8 billion, it said.

"The acquisition will increase our mortgage book by 10% [from GBP84.4 billion] and increases our savings book by about 6% [from GBP88.5 billion]. And we are getting it a discount" of 23% from net asset value, Frits Seegers, head of Barclays Global Retail and Commercial Banking, told Dow Jones Newswires.

Seegers also said the bank will get 270 Standard Life employees based in Scotland, bringing its total number of employees there to about 1,270.

"We are looking at expanding our retail banking operations, as well as our commercial banking operations in Scotland," he added.

The U.K. bank has been looking to expand in the U.K. and abroad as some peers hard-hit by the financial crisis downsize operations. Barclays recently bought Citigroup Inc.'s (C) credit card business in Portugal, and is in talks to acquire retail and merchant banking assets in Italy from two local banks.

Seegers declined to comment on any acquisition targets.

Analysts said that although Monday's deal is too small to have a significant impact on Barclays' operations, it underscores the bank's efforts to increase profit from its retail and commercial banking operations. Barclays' investment banking division has been the main profit driver for the group, especially following its acquisition of Lehman Brothers' operations in the U.S.

Barclays also said it and Standard Life agreed to jointly explore opportunities in the U.K. retail savings and investments sector.

Along with the now-sold banking assets, Standard Life has insurance and investment-management operations and about 10,000 employees worldwide.

Near the close, Barclays shares were down 9 pence, or 2.6%, at 352 pence, while Standard Life was down 4 pence, or 1.5%, at 227 pence in an overall lower market.

Company Web site: www.barclays.com

-By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com