Sir Brian Pitman, the former Lloyds TSB chairman who carved a reputation as one of Britain’s most respected bankers, has died at the age of 78.

Sir Brian, who worked for Lloyds for 49 years and who in 2008 headed Virgin’s unsuccessful bid for Northern Rock, died early yesterday morning in hospital after suffering a heart attack on Tuesday.

After retiring from Lloyds in 2001, Sir Brian took on a number of part-time posts, most recently becoming chairman, in January, of Virgin Money, the bank seeking to expand its operations with a position on the high street.

He also sat on the board of Virgin Atlantic, the airline, and was a senior adviser to Morgan Stanley from 2001. He was chairman of Next, the retailer, from 1998 to 2002.

Sir Brian joined Lloyds in 1952 and is credited with building it into a banking powerhouse in the 1980s and 1990s. As chief executive, he led the merger of Lloyds Bank and TSB in 1995, before his appointment as chairman in 1997.

He was credited with being ahead of his time in recognising the cost-savings that could be wrung from interbank mergers and with pioneering focus on shareholder value.

Sir Brian was knighted for services to banking in 1994. In an interview two years ago, he attributed his drive to succeed to the death of his father in a car crash when he was only nine weeks old. His parents had eloped to marry. “Anyone who loses a father takes on responsibility quite quickly,” he said. “It made me self-reliant.”

Sir Brian also recalled that when he was working for the Cheltenham & Gloucester building society, before Lloyds, a friend’s death as a result of a freak fall had inspired him to take his career more seriously.

Sir Brian was a music fan and played trombone in a jazz band when he was younger. He enjoyed golf and was a keen follower of cricket and rugby.

Tributes to Sir Brian poured in from the City last night on news of his death. Eric Daniels, chief executive of Lloyds Banking Group, said: “Sir Brian was a truly inspirational leader, who contributed an enormous amount to Lloyds. He was a towering figure and was involved in many of the major changes that have shaped the banking sector.”

Sir Richard Branson, the founder of Virgin Group, said: “He was the giant of his profession, the most respected banker of his generation and the generations that followed. I was fortunate enough to know Sir Brian personally and had him hold our hands as we moved into the world of banking. Everyone who knew this gentle giant will miss him enormously.”

Sir Brian leaves a widow, Barbara, a daughter and two sons.

The wit and wisdom of Sir Brian Pitman

On Virgin Money’s bid to buy Northern Rock in 2008: “It’s because I don’t want Northern Rock to go bust. A big bank going bust in the UK?” He shakes his head. “And a lot of my friends have said I should do it. It would be a good thing for the City if I did.”

On losing his father at nine weeks: “Anyone who loses a father takes on responsibility quite quickly,” he says. “It made me self-reliant.”

On Lloyds suffering huge exposure to the Latin American sovereign debt crisis in the 1980s: "It is a sad indictment of human nature that you have to hit bottom before you learn. You learn as much from your mistakes as you do from acting correctly. I was also able to see the mistakes made by others and learn from them. You learn as much from a bad manager as you do from a good one."

On growing up in Cheltenham: "It was a very happy environment. I was blessed with a very loving mother. It is not money that matters in life. I had what matters most in life."