National Irish Bank will pay a "generous" rate of interest to customers who were overcharged. NIB chief executive, Mr Grahame Savage, said the bank would take account of the "time value" of the money - the interest lost over a period of years - and assume all accounts were subject to the highest rate of interest. But he warned that it might be some time yet before customers would be reimbursed. "We will try to expedite whatever needs to be paid as soon as possible, but it is a long and slow process."

Meanwhile, the bank has confirmed the Garda Bureau of Fraud Investigations has been granted District Court orders to inspect documents at NIB branches at Carndonagh, Co Donegal and Blanchardstown, Co Dublin, on foot of customer complaints. The bank also confirmed that it has uncovered evidence of "interest amendments" to customer accounts at its branch in Sligo. NIB chief executive, Mr Savage said this was uncovered by internal auditors. Instances of overcharging throughout the NIB network are being examined by accountants, Arthur Andersen, whose report is now close to completion.

Despite the adverse publicity, the bank insists that it is not losing business to other financial institutions.