National Australia Bank provided an outline of the planned demerger of Clydesdale Bank from the group yesterday. NAB will distribute approximately 75 per cent of its UK banking arm to NAB shareholders.It will sell the 25 per cent balance through an initial public offer and list on the London Stock Exchange, bringing to an end a grand expansion plan set in place more than 30 years ago.A scheme booklet for the demerger may be ready later in November.Clydesdale continues to suck up capital.One new provision of £390 million (or A$704 million after tax) relates to the latest and seemingly final allowance for the mis-selling of consumer credit insurance (an industry wide saga in the UK).A further provision of £75 million ($135 million after tax) relates to interest rate hedging products and fixed rate tailored business loans, a headache largely of NAB's own making.Finally, NAB said it would provide capital support for Clydesdale of £1.7 billion in relation to potential future legacy conduct costs. The bank said it would have "a capped indemnity of £1.115 billion upon separation", while "assuming no further pre-demerger provisions are raised, future legacy conduct costs will be shared 90.3 per cent/9.7 per cent between NAB and Clydesdale."