LONDON (Reuters) - Victor Blank is to step down as chairman of Lloyds Banking Group in the next year, following intense criticism of his part-nationalised British bank's purchase of troubled rival HBOS. This year's takeover of HBOS has saddled Lloyds with billions of pounds of losses from HBOS's more risky loan book, forcing the government to provide rescue funds and prompting investors to call for Blank to quit.

Lloyds said yesterday the decision to retire was Blank's, and its board was unanimous in wanting him to seek re-election for another three years. Blank's decision could avoid a potentially contentious vote at Lloyds' annual shareholder meeting next month, as he is due to stand for re-election and some investors were likely to reject another full term.