Permanent TSB is to shut branches, cut jobs and reduce deposit rates as it tries to return to viability writes Business Editor David Murphy.
The CEO of the company Jeremy Masding told the Oireachtas Joint Committee on Finance the bank would unveil details of its restructuring plan next week.
However, it is understood the Permanent TSB will cut 20 of its 92 branches. However, Mr Masding would not comment on the level of closures today.
The CEO also raised concerns with the new personal insolvency legislation which is going through the Oireachtas.
Jeremy Masding said the treatment of loans in negative equity was "unclear".
He added that role of personal insolvency practitioners, who work as independent intermediaries between banks and borrowers, needed to be monitored.
He was of the opinion that those individuals should not be allowed to advertise their services.
Mr Masding added that he felt the cap of €3m on loans which could be covered by the personal insolvency legislation was "too high".
Referring to the branch closures, 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 0.85pc over recent months.
Mr Masding said he was not ruling out further reductions in home loans but it would depend on deposit rates and the cost of funds to Permanent TSB.
He 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 TD said the company's arrears were "alarming" with 34% of the banks 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 it was now improving.
