Permanent TSB is to shut branches, cut jobs and reduce deposit rates as it tries to return to viability.
The bank’s CEO Jeremy Masding told the Oireachtas Joint Committee on Finance that it would unveil details of its restructuring plan next week.
It is understood that Permanent TSB will cut 20 of its 92 branches, but Mr Masding would not comment on the level of closures today.
He said the job losses would be achieved through a voluntary severance scheme, but he would not put a number on the redundancies.
The bank has been criticised by customers for its elevated standard variable home loan rate, which is currently second most expensive in Ireland after Ulster Bank.
Mr Masding said the company had cut its standard variable home loan rate by 0.85% over recent months.
He said he was not ruling out further reductions in home loans, but said it would depend on deposit rates and the cost of funds to Permanent TSB.
The CEO said that the deposit rates offered to savers by Irish banks were currently "irrational" and had pushed up the cost of funds.
The bank has taken advertisements in newspapers today announcing a cut of 0.5% in deposit rates for savers.
Fianna Fáil Finance Spokesman Michael McGrath said the company's arrears were "alarming" with 34% of the bank's buy-to-let mortgages in arrears.
Mr Masding said the process of collections when he joined the bank was not what he was used to, but said it was now improving.
Separately, Mr Masding has also raised concerns with the new Personal Insolvency legislation which is going through the Oireachtas.
He said the treatment of loans in negative equity was "unclear".
Mr Masding added that role of personal insolvency practitioners, who work as independent intermediaries between banks and borrowers, needed to be monitored and those individuals should not be allowed to advertise their services.
He said he felt the cap of €3m on loans which could be covered by the proposed legislation was "too high".
