The board of Axis Bank has approved purchase of an additional 29 per cent to stake in Max Life Insurance which will take the private lender’s total stake in the insurer to 30 per cent. Max Financial Services presently holds a 72.5 per cent stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5 per cent stake. Also, Axis Bank has a minor stake in the life insurer. Axis Bank is the third largest private bank and Max Life is the fourth largest private life insurer in India. Post completion of the series of transactions, Max Life will become a 70:30 joint-venture between Max Financial Services and Axis Bank. The proposed transactions are subject to approval of requisite corporate and regulatory authorities. Max Life Insurance Company had a turnover of Rs 19,987 crore in 2019. Axis Bank expects the transaction to complete in six to nine months, subject to regulatory approvals.
Axis Bank and Max Life Insurance have had a business relationship for over a decade, providing long term saving and protection products to over 19 lakh customers. The total premium generated through this relationship has aggregated to over Rs 38,000 crore. Axis Bank shares were trading 3.5 per cent higher at Rs 442.
Read EquityPandit’s Nifty Bank Outlook for the Week