CLYDESDALE Bank staff are bracing themselves for hundreds of job losses after its parent company announced a major strategic review.

Trade union Unite has called on the Glasgow-based institution to clarify urgently its jobs plans as chief executive David Thorburn signalled last night the review would have a major impact on workforce numbers.

He said returns at the bank are "unacceptable" because of rising costs and a sudden increase in bad debts from property loans as the economy has slipped backwards.

Asked if the review could lead to job cuts at Clydesdale and its sister Yorkshire Bank, Mr Thorburn said: "A significant proportion of our cost base is represented by employees. You cannot get into a review of this nature without having an impact there."

Clydesdale, which is owned by National Australia Bank (NAB), employs 4200 people in Scotland, including more than 2500 in Glasgow and Clydebank.

David Fleming, national officer at Unite, said: "Unite has grave concerns about the scale of the review and over the future commitment of NAB within the UK.

"We have opened up dialogue with management in order to get urgent clarification as to the possible implications for the staff."

It comes after the bank announced plans to axe 279 jobs before Christmas.

Banking expert Rob Webb, of Glasgow Caledonian University, said: "Banks have been making less profit and they need to cut their costs. One way is to lay off people and cut branches."

Dr Webb added: "As cost-cutting and staff redundancies are on the table, I wouldn't rule them out."

While Mr Thorburn insisted "nothing is off the table" in the review, he emphasised the strength of its retail banking network, implying wide-scale branch closures are unlikely.

NAB attributed its decision to review its UK business in part to the impact of Government spending cuts on the British economy, which shrank in the last three months of 2011.

Chief executive Cameron Clyne said: "It is clear the UK economy is likely to experience a much longer period of subdued growth, with the ongoing sovereign debt crisis in the eurozone and the continuing austerity programme by the UK Government."

This was seized upon by the SNP, which blamed Westminster public sector cut-backs for damaging investment north of the Border.

SNP Treasury spokesman Stewart Hosie said: "NAB's decision underlines the damaging uncertainty that the UK Government's austerity programme is causing for business and investment."

He added: "Clydesdale Bank workers need urgent assurances that their positions are safe."

Meanwhile, Lloyds Banking Group, owner of Bank of Scotland, confirmed 20 jobs will go in Scotland as it announced plans to cut another 1000 jobs UK-wide.