TSB Bank has said that it is concentrating on growing its core business and examining strategic alliance options, as its 1994 proposal to sell the bank to National Australia Bank (NAB) will not now be implemented. "It's been clear to us for some considerable time that the 1994 proposal will not be implemented. We understand and accept that," chairman Dr Dermot Whelan said.

"We have concentrated on developing the bank and increasing its competitive position. In parallel with that operational growth, we have continued to study and investigate a whole array of strategic opportunities."

He said TSB's trustees had not submitted any further proposals to the Government on options for its future since its request for approval of the sale of the bank to NAB, the parent of National Irish Bank, nearly four years ago.

Dr Whelan said that TSB was not currently talking to any prospective strategic partners but was in the process of evaluating other options.

In terms of a strategic alliance, TSB is happy to look at initiatives from a simple arrangement with an insurance company to a more complex arrangement although all alliances will be viewed in terms of what structure is best for the bank's stakeholders its customers, employees and the Government.

The bank, which reported a 10.5 per cent increase in pre-tax profits to £22.1 million for the 1997 financial year yesterday, said it would be putting a growing emphasis on the small business market. Although Dr Whelan said the bank's trustees saw no particular advantage in a flotation.

Nor do the trustees intend to put forward a proposal for the sale of the bank by tender.