Lloyds TSB says it will hire 150 workers in India for its general insurance business as it tests the benefits of cheaper labour.
The bank will move 107 jobs to India from Bournemouth and Newport. It will also hire 43 Indian staff for work not already done in Britain.
Lloyds TSB plans to have 1,500 workers in India by the end of 2004. British banks are trying to cut costs by hiring in India, where they can pay graduates as little as $200 a month to work in administration and answer customer calls.
The bank said in November it would shut a call centre in Newcastle and move 750 jobs to India. The insurance jobs will give Lloyds TSB about 1,150 jobs in India.