In an apparent cost cutting measure, the Cheltenham and Gloucester (C&G), a wholly owned subsidiary of Lloyds TSB Bank, will close a mortgage and customer service centre and move about 300 jobs to India.

The firm said it will close a mortgage and customer service centre in Warwick that employs 350 staff, a move which has been criticised by the Lloyds TSB Group Union (LTU).

The jobs would be moved to Scunthorpe and Gloucester India, but the firm gave no breakdown of the figures.

The LTU described the decision as "completely unacceptable and one which would cause hundreds of compulsory redundancies."

Assistant general secretary of LTU Steve Tatlow said, "C&G jobs in the UK are to be ditched merely because existing staff can be replaced by staff in India, who will be paid a fraction of their salary."

However, Mike Mitchell, mortgage and customer services director at C&G assured, staff at Tachbrook Park would be offered roles at the firm's Gloucester site.

"This is not a decision we have made lightly. We aim to manage any reduction in jobs with care and sensitivity through natural staff turnover, transferring and redeploying staff," he said.

"We operate in a fiercely competitive environment and it is vital that we find ways of running our business effectively and competitively," he added.

The Lloyds TSB group has already transferred around 2,000 staff to India.