The bank has 33,000 homeowners who are in difficulty with mortgages.
CEO David Duffy also told the committee that the voluntary severance scheme would see up to 1,800 people leave the bank by the end of this year.
The departures are part of a redundancy scheme that will see a total of 2,500 employees leave the bank leading to savings of €200m.
Changes to pension arrangements will save a further €30m.
Mr Duffy said if the European Stability Mechanism takes a stake in AIB it would be positive for potential investors in the bank because AIB would no longer be linked to the State.
The bank is also planning to ask senior individuals who ran the bank during the boom and who have large pensions to consider making a contribution back to the bank.
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