By Marcus Leach

A bank in India is counting the cost of lax staff who failed to notice termites eating over £125,000 worth of rupees.

The bank, in the state of Uttar Pradesh, has found staff guilty of laxity as they failed to notice that termites had started to eat the bank notes, totalling ten million rupees (£137,000).

It is not the first time such a case has developed in India, in 2008 termites in Bihar state ate a trader's savings stored in his bank.

The State Bank of India says an enquiry into the latest incident has been held.

"The branch management has been found guilty of laxity due to which the notes were damaged by termites in the Fatehpur branch of Barabanki district," State Bank of India Chief General Manager Abhay Singh told the Press Trust of India.

"Action will be taken against those responsible in the matter.

"As it was the bank's fault, it will bear the loss caused due to termites... there will be no loss to the public."

Ms Singh said that identity numbers on the majority of the notes were still intact, which meant that they could be replaced.