At 1155 hrs VH-CEB reported inbound at the 2RN reporting point on the circuit training frequency 123.6 Mhz. The pilot was instructed to call on 132.8. He was then told to enter the circuit on crosswind for runway 29. Approximately two minutes later the pilot was asked for his aircraft type. He reported that he was an Arrow and that he was on crosswind. At that point the Aerodrome Controller (ADC) responsible for the training circuit informed the other ADC that VH-CEB was infringing the circuit and was at approximately 1000 feet. VH-CEB was then instructed to turn left and enter right crosswind. The pilot replied that he was already on crosswind and that he was unfamiliar with Bankstown. VH-CEB was then instructed to overfly midfield and join for a right circuit on crosswind. The pilot of VH-IAD, a PA38 which was in the training circuit at the time, advised later that VH-CEB had come in close proximity to him. The pilot of VH-CEB stated that this was only his second visit to Bankstown. Significant Factors 1. The pilot of VH-CEB was unfamiliar with circuit procedures at Bankstown and misunderstood ATIS information.