MORE than two years after National Irish Bank bid an estimated £120 million for TSB Bank, NIB's new chief operating officer Mr Philip Halpin says the acquisition still offers the best opportunity to grow NIB's business in Ireland.

The 41-year-old Dubliner, who this week assumes overall responsibility for day-to-day operations at NIB, says the bank's progress in Ireland rests with the politicians, who have yet to reach agreement on the sale of TSB.

Reported dissent in the Government ranks on the creation of a State-owned third banking force is understood to have prolonged the decision-making process. To date, Mr Halpin says the bank has received no clear indication on the outcome.

"NIB is intent on growing its business and expanding the range of services for its customers," he says. "The acquisition of the TSB Bank is the prime focus of our attention in this regard."

Despite the uncertainty, NIB's parent, National Australia Bank - one of a number of financial institutions bidding for the TSB - still has a "very strong commitment" to Ireland, he says. "It sees great prospects to expand and grow NIB's business."

The bank, the smallest of the four main clearing banks in the Republic, employs 850 people in 59 bank branches.

Renowned for its aggressive marketing campaigns and low cost services, NIB is estimated to now hold around 10 per cent of the Irish banking market. But clearly it still wants more.

In a move that would appear to underline the Australian parent's continued strong interest in Ireland, the bank has this week appointed Mr John Wright, as chief executive of its banking business in the North and Republic, while elevating Mr Halpin to a newly created position to oversee NIB's core banking business in the Republic.

Mr Wright replaces NIB executive director Mr Barry Seymour, who temporarily assumed responsibility for the bank following the departure of its previous chief executive, Mr Jim Lacey in 1994. Mr Seymour is leaving Dublin to head a review of risk management activities for National Australia Bank in Europe.

As a result of the latest shake up at the bank, Mr Halpin, together with Mr Wright will be the key players in any negotiations with the Government if the purchase of the TSB is allowed to go ahead.

Despite his relatively recent arrival at the higher levels of the Irish banking world, Mr Halpin will already be well known in political circles.

As the bank's chief economist he has, on an almost daily basis, aired his views and predictions on the direction of interest rates and the state of the economy in the national media. His media exposure has made him one of Ireland's best known bankers.

From Walkinstown in Dublin, Mr Halpin studied economics and history at University College Dublin, graduating with a BA degree in 1976. He subsequently received a higher diploma in education and a Masters degree in economics.

After college he embarked on a brief lecturing career, spending a year at the College of Marketing before joining Dudgeon Stockbrokers, a small Dublin-based firm which eventually merged with Goodbodys.

Almost two years later he moved to North Africa to take up a lecturing post at the Gezira University in Sudan, but soon returned to Dublin's stockbroking community, this time to work as an economist and gilt dealer with the small Solomons Abrahamson firm.

In 1986, Mr Halpin join Abbey Life investment managers to set up its Irish investment management division. At that time the company had an investment portfolio worth around £90 million, he says.

Having completed his mission there, Mr Halpin moved to National Irish Bank in the late 1980s as its chief economist, leading its treasury and funding operations. He was appointed to its executive committee in 1993.

His high profile will not have been lost on his Australian bosses, whose marketing strategy for its worldwide operations has always focused on putting a human face on its subsidiaries. And while Mr Halpin remains coy on whether he is about to spearhead any new marketing campaign at the bank, he says its traditional strategy for gaining market share in Ireland will continue.

"We will continue to have a strong interface with the media. NIB has always prided itself on having a strong marketing image. High profile is key to driving the bank forward," says Mr Halpin.

"The key to NIB's success is to service key areas of competitive advantage for the bank. We must be friendly and accessible, given our size this is a major platform from which we can operate. Price is also all important."

Taking over the reigns this week, Mr Halpin says the bank is in good shape. Having substantially reduced its provisions for bad debts over the past two years, strong growth in its mortgage and commercial lending he says has boosted its performance.

In the six months to the end of March, NIB reported a 2.4 per cent rise in pre-tax profits to £10.98 million, with profits continuing to grow strongly this year in line with the rapidly expanding economy, he states.

But he warns however that his customers, along with those at the other financial institutions, are now facing a period of higher interest rates.

According to Mr Halpin, borrowers are now looking at increases of a half of one percentage point in bank and building society rates by the end of the year.

Given the strong growth in the Irish economy and Central Bank concerns about the emergence of inflationary pressures, higher interest rates are "inevitable" he says.

While low interest rates have been the crucial factor in driving Ireland's economic growth in the past three years, he believes it would be prudent to allow interest rate to edge marginally higher.

Such a move though he insists would be "good" for the economy helping to curb inflation. "We are moving from a boom to a more stable but still very friendly environment which will help to keep a lid on things".