Some 68 staff at the newly-merged Irish Life & Permanent will have to accept new positions or take voluntary redundancy as a result of the merger. The posts have been duplicated as a result of the union of the two companies.

Up to 54 managerial positions are directly affected with 14 clerical positions also surplus to requirements.

This number is lower than the initial estimate that up to 100 jobs could be shed following the merger and the company has stressed that many of the people affected will be accommodated and offered retraining.

The merger should realise cost savings of the order of £12 million (€15.24 million). Irish Life & Permanent chief executive, Mr David Went, said it was on target to achieve these cost savings. "Eliminating duplication of functions will probably account for around 50 per cent of these savings on an annual basis.

"Other factors include our improved credit ratings and consolidation of data processing functions."

Meanwhile, K&H the Hungarian bank of which Irish Life owns 24 per cent, has announced up to 700 job losses as part of a major restructuring plan. Its newly-appointed chief executive, Mr Tibor Rejto, has said he intends to streamline its operations and exercise more direct control over its subsidiaries.

Irish Life is expected shortly to sell its shareholding to its joint venture partner in K&H, the Belgian bank Kredietbank.

Negotiations are also in progress which should lead to the sale of Irish Life's stake in Irish Life Home Loans and in Irish Intercontinental Bank to Kredietbank. The merger between Irish Life and Irish Permanent was formally completed this week with Irish Life & Permanent shares beginning trading in Dublin and London on Wednesday.