Anz Scrip Dips In Sydney On Variava Ruling

Shares in Australia and New Zealand Banking Group Ltd (ANZ) dipped three per cent yesterday in Sydney, reacting to Special Court Justice S N Variavas ruling in Mumbai on Wednesday, directing ANZ Grin-dlays to repay an arbitration award worth about Rs 1,075 crore to National Housing Bank in a case linked to the securities scam of 1992.

Shares in the bank, one of Australias largest, closed 26 cents, or 2.7 per cent, down at A$9.65 in active trade. The ANZ news came out of left field, said a senior institutional dealer with a major brokerage in Sydney.

ANZ now has 30 days in which to lodge an appeal, and can keep the money while appealing to the Supreme Court. While we would have preferred the resolution of the matter at this juncture, we believe the strength of our position will be ultimately recognised by the Supreme Court, said ANZ chief executive officer John Macfarlane.

 

In Mumbai, sources said ANZ Grindlays would have to seek funds from its Australian parent to make the payment to National Housing Bank. Of the Rs 912 crore which ANZ Grindlays received from NHB on April 17, 1997, the principal amount of Rs 506 was repatriated to Australia, while Rs 406 crore was retained in India, the sources revealed.

The sources added that it would be in ANZ Grindlays benefit to repay the amount as soon as possible. This is primarily because the 18 per cent interest rate will otherwise keep accumulating till the Supreme Court passes its judgement, said sources.

On Wednesday, Variava set aside an award of nearly Rs 912 crore in favour of ANZ Grindlays Bank. The sum was awarded last March when National Housing Bank, wholly owned by the Reserve Bank of India, was ordered to repay ANZ Grindlays Rs 500 crore, apart from interest on the sum.