Lloyds TSB is offshoring its finance and accounting operations to India, under a five-year, multi-million pound deal.

Under the agreement, business services firm Xansa will provide the bank with accounts payable, employee expenses and fixed asset accounting services, from its outsourcing centres in India.

Xansa said it will process more than 330,000 invoices and 144,000 expense claims for Lloyds TSB each month.

Lloyds TSB said the deal would help it transform and standardise its operations to provide "significant cost savings". This will also enable it to achieve service improvements.

Xansa already provides offshore back office services to Lloyds TSB from its Indian outsourcing delivery centres.

The bank has not said whether the deal will lead to any job losses in the UK.