ANZ National, New Zealand's biggest bank, is setting up a training fund and a hardship fund for staff it is sacking.

The $12 million External Training Fund is to support staff affected by their jobs being moved overseas. The fund applies from June 1, so people who have already left are not covered.

It was expected to mostly be used for formal education of former employees retraining.

The bank is moving up to 500 mostly back office jobs to India, according to Finsec, the finance sector union in New Zealand.

The bank has disputed this figure and said today 2.5 percent of its 9500 New Zealand roles had been moved to India, which is about 238 roles.

About 120 staff have been made redundant and 46 contracts ended.

A separate Past Employee Care Fund is available to any staff member made redundant. It does not have a stated "pot of money" but makes up to $15,000 available to employees who encounter hardship.

The bank is also working on improving rates of redeployment within the bank.

Finsec said it was opposed to work being sent off shore by highly profitable banks, but the arrangements announced today were a break through. "It is absolutely a first in the finance sector across both Australia and New Zealand," said Finsec general secretary Andrew Casidy.

"It also a first in New Zealand, as far as I am aware, outside the finance sector," he said.

ANZ National general manager human resources, Felicity Evans, said it was timely to look at steps to assist staff affected by their jobs being moved overseas.

"In the current economic environment we need to work together to focus on supporting our staff," she said.

The move comes at a time when Australian-owned banks in New Zealand have been criticised for not passing on falls in the official cash rate to mortgage holders.

ANZ National reported a $494 million profit in the six months to March 31, down 5 percent from last year, but up 24 percent from the previous six months.

The measures announced today will also apply to ANZ staff in Australia following talks with the Finance Sector Union in Australia.

The Past Employee Care Fund will provide payouts to former employees who are suffering genuine hardship. Both funds are administered by a council including union members.

The ANZ Group has 3500 staff working in Bangalore -- India -- in a technology and operational centre.

ANZ National said it was committed to maintaining call centre roles for personal and small business customers in New Zealand and Australia.