ANZ chairman David Gonski insists the bank has a heart, but not the power to cancel debts owed by investors in failed agribusiness Timbercorp.
The bank's annual shareholder meeting was attended by a large number of emotional investors, who repeated accusations made at a recent Senate hearing that the bank kept financing the forestry scheme despite knowing it was in trouble.
The investors say financial advisers failed to warn them of risks, including borrowing to invest, ahead of Timbercorp's collapse during the global financial crisis.
Liquidators are chasing debts from almost 3,000 people who borrowed from Timbercorp, who have lost their life savings and in some cases owe more than double what they borrowed due to interest.
"Yesterday I spoke to two men who were suicidal," investor and ANZ shareholder Susan Henry to Thursday's meeting.
"One man actually planned to kill himself so his wife would get insurance because his policy would have allowed a payment to be made."
ANZ is entitled to $195 million, or one third, of the Timbercorp debt owed to creditors.
Mr Gonski said ANZ was legally powerless to forgive or reduce the loans still owed by investors, as the liquidator was in charge of that process.
"I do want to make it clear that we do have a heart," he said to Ms Henry.
"I have read your testimony and I am sorry that the two people you spoke to are upset.
"We also sometimes have to balance that obligation to all shareholders."
Mr Gonski said there had been no material issues found so far in a review of the treatment of Timbercorp investors.
The bank was also criticised by Financial Services Union national secretary Fiona Jordan over a new enterprise agreement, which the union argues strips away working conditions for a pay rise.
Talks on the deal broke down this week.
Meanwhile, the bank expects the Australian economy to grow at an even slower rate in 2015, but is more optimistic about the longer term outlook.
Despite low interest rates and a falling Australian dollar, the economy would continue to be weighed down by weakness in the mining sector, Mr Gonski said.
Mining would continue to play an important role, but services such as education, health, IT and engineering would need to become a more important part of the economic future, he said.
The bank will in the coming months officially respond to the recently released Murray report, which recommends strengthening the sector against potential economic shocks, Mr Gonski added.
"Whatever happens after discussions next year, I want you to know that ANZ is already strong and has a range options open to ensure it is unquestionably strong," he told shareholders.
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