LONDON: The chairman of British bank TSB, Richard Meddings, has said he will step down later this year, after the challenger's Spanish parent Sabadell shelved plans to sell the unit last week.

Meddings - a former Standard Chartered finance director who also sits on the board of Credit Suisse - has steered TSB through a turbulent period over three years as chairman, including a major IT meltdown that plunged the bank to a loss and ousted its former CEO.

"Following Sabadell's announcement last week that no sale process will be initiated in the near future and with TSB performing well, this is the right time for Richard to step down," TSB said on Wednesday.

Meddings will stay on while the board searches for a successor, TSB said.