The country’s third-largest private sector lender, Axis Bank, will invest around Rs 50-70 crore for a less than 10% stake in Fairfax-backed Go Digit Life Insurance. The lender is already the originator of Max Life Insurance Company.

Axis Bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance, proposing to invest up to Rs 700 crore in two tranches by acquiring a stake in the insurer. The bank said in a regulatory filing that it plans to acquire up to 9.94% of Go Digit Life Insurance.

Axis Bank said the equity purchase is subject to the execution of a definitive agreement, the terms and conditions of which will be mutually agreed upon other conditions being met. “The company intends to carry out life insurance business in India subject to a certificate of registration issued by the Insurance Regulatory and Development Authority of India (IRDAI),” it said.

Axis Bank and its two subsidiaries, Axis Capital and Axis Securities, own 12.99% of Max Life Insurance. The lender plans to increase its stake to around 20% soon. Axis Bank closed at Rs 737.30 per share on the BSE, down 0.69%.