Legal action at the High Court by thousands of shareholders against Royal Bank of Scotland has been adjourned for 24 hours for settlement talks.

The adjournment, which was agreed by the claimants and the defendants, was granted at a brief hearing in London by Mr Justice Hildyard.

He was told by Jonathan Nash QC, for the shareholders: "The parties are currently involved in settlement discussions and are hopeful of making progress."

Mr Nash added: "They have agreed that these discussions would be facilitated by allowing a further period of time for them to continue before the trial begins.

"On that basis they have also agreed that the start of the trial should be deferred by 24 hours until 10.30am tomorrow."

David Railton QC, for the defendants, said "that is agreed".

The judge gave the go-ahead for the adjournment on the basis that the parties agreed there should be a delay for talks and the assurance given that there was a prospect that the "matter can be brought to a conclusion".

He added: "Obviously I would wish to facilitate that result."