Lloyds TSB has announced plans to close a processing centre in Peterborough causing the loss of 243 jobs.
Lloyds TSB is the UK's fifth biggest bank
It said the Thorpe Wood office will shut by the end of this year, with the work being transferred to other Lloyds TSB centres across the UK.
The bank, which said staff would be offered the chance to relocate, denied union allegations that the positions were being transferred to India.
It said current plans to move 400 jobs to India this year were unrelated.
'Not taken lightly'
"It's always a sad day when we have to close any of our sites and this isn't a decision we've taken lightly," said Lloyds TSB's head of operations, Paul Baker.
"Our priority over the next few weeks is to talk to all our staff individually about other opportunities for those that want to stay with the bank."
Despite the bank's assurances, the Lloyds TSB Group Union claimed that the closure announcement is linked to the firm's ongoing export of jobs to India, where it now has around 2,500 workers.
"We want to embarrass Lloyds TSB into keeping these jobs within the UK," said Peter O'Grady, assistant general secretary of the union.
Lloyds TSB is the UK's fifth largest bank.