Ireland's largest bank by assets said O'Grady would formally take take up the role on Thursday, replacing Credit Suisse-bound Francesca McDonagh.

O'Grady had left the bank in March to join Irish food group Musgrave in a move that Bank of Ireland blamed on state-imposed curbs on banker pay and bonuses.

The Irish Times reported in August that O'Grady was set to return as CEO.

O'Grady earlier held posts at AIB Group, Citibank and Dresdner Kleinwort Benson.

(Writing by Conor Humphries; Editing by Louise Heavens and David Goodman)