Lloyds TSB is to outsource almost half of the programmers in its insurance and telephony division following a three-month review to improve IT efficiency.
The company said 100 programmer roles and 110 IT contractor roles would be outsourced to India to "improve the level of service" its business gets from IT.
The cuts will come from an IT department of 450 staff. The losses will affect offices in London, Cardiff and Manchester as well as staff working in its telephony and insurance divisions.
Migration of roles will begin this October and will be fully offshored by March 2008.
"All IT staff will be offered voluntary redundancy or the possibility of alternative placement within the company," said a spokesman for Lloyds TSB.