Settlement reached in ANZ-NHB Dispute
Fri 14 Dec 2001
Published: Mon 17 Dec 2001 11:15:01
Document No: 184939
Document part: A
Market Flag: N
AUSTRALIA AND NEW ZEALAND BANKING GROUP 2001-12-14 ASX-SIGNAL-G HOMEX - Melbourne +++++++++++++++++++++++++ ANZ today confirmed it had reached agreement to settle Grindlays Bank's long running dispute with India's National Housing Bank (NHB). The agreement follows an order passed by the Supreme Court of India earlier this week, in which the Court suggested settlement terms to the parties. The dispute originated in 1992* when Grindlays Bank was a subsidiary of ANZ. When ANZ sold Grindlays Bank to Standard Chartered in April 2000 it provided Standard Chartered with indemnities on credit and litigation matters, including the National Housing Bank matter. Provision for these indemnities was made in ANZ's 2000 Financial Results. Both parties today accepted the Supreme Court's suggested settlement terms regarding the disputed monies currently on deposit with the Court. The terms will see ANZ recover Indian Rupees 6.20 billion (approximately A$250 million pre tax) with NHB receiving Indian Rupees 10.25 billion (A$413 million). The parties will aim to finalise settlement by 19 January 2002, so the moneys can be released on that date. ANZ Group Managing Director, Elmer Funke Kupper said ANZ was pleased to put the 10 year dispute behind it. "Over the last 18 months, ANZ worked to eliminate the economic risk to the bank of this dispute, and reach an amicable settlement. We are pleased this has now been achieved and that we can finally put the matter to rest," Mr Funke Kupper said. ANZ Chief Financial Officer, Mr Peter Marriott said: "This Grindlays recovery will be included in ANZ's results for the half year." "We are also likely to review the level of the general provision in the light of the shock collapse of Enron and will probably make a special charge during the half. This is not expected to exceed the amount of the Grindlays recovery," Mr Marriott said. For media enquiries, please contact: Paul Edwards HEAD OF GROUP MEDIA RELATIONS Tel: 03-9273 6955 or 0409-655 550 Email: email@example.com * See attached chronology of the dispute. A full copy of this announcement, which includes chronology of the dispute, is available for purchase from ASX Customer Service on 1 300 300 279. Charges apply.