Justice Minister Alan Shatter says comments made by Permanent TSB public interest director Ray MacSharry to an Oireachtas committee yesterday were "entirely inappropriate".

Mr MacSharry told the Joint Oireachtas Finance Committee that there would be no debt forgiveness from banks.

On Today with Pat Kenny, Mr Shatter said Mr MacSharry was "seriously out of touch" with the manner in which financial institutions will have to deal with the issue.

He said he should "give serious consideration to what he said".

"I was very disappointed in what Ray MacSharry said to the Joint Oireachtas Committee yesterday.

"I thought it was entirely inappropriate in the context of this legislation that he would have known was completing its passage through the Oireachtas yesterday.

"All directors, including the public interest directors of financial institutions must have regard to the content and the intent of the legislation.

"I believe Ray MacSharry should give serious consideration to what he said".

However, in a statement this evening, Mr Shatter said he welcomed Permanent TSB decision to confirm the bank’s commitment to applying the terms of the Personal Insolvency Act 2012.

Permanent TSB said it recognised that there are circumstances in which it will be necessary for the bank to consider writing off a portion of debt for some customers.