The Irish Bank Officials Association (IBOA) is seeking an immediate meeting with National Australia Bank's new chief executive, Mr John Stewart, to clarify the bank's plans for its Irish operations.

The bank owns National Irish Bank and Northern Bank and employs more than 1,000 staff in Ireland. Mr Stewart, who took over as chief executive at the beginning of February, said he would consider selling the bank's operations in the Republic and in Britain if it would create shareholder value. He added that developing these banks would create most shareholder value at the moment.

Yesterday, the IBOA reacted angrily to these comments and said it was a fundamental breach of commitments given to the IBOA by Mr Stewart last December when he was head of NAB's European operations. At that meeting he told the IBOA that he had no plans to sell off NIB or Northern Bank, and on his appointment gave the IBOA a firm commitment in writing that both of its Irish banks were a central part of the NAB group.

IBOA general secretary Mr Larry Broderick said Mr Stewart's comments only served "to annoy staff and customers" and to create uncertainty in the markets.

"Furthermore with National Irish Bank subject to external investigation and intense scrutiny, his reported comments do not help customer confidence or boost staff morale."

Apart from the two Irish banks, NAB also owns the Clydesdale in Scotland and the Yorkshire in Leeds. Mr Stewart had been working to integrate these banks.

The four have an estimated market value of as much as £8 billion (€11.8 billion) with assets of £24 billion.