HDFC Bank, the country’s largest private sector lender, said on Thursday it will buy a 9.94% stake in Go Digit Life Insurance Ltd.

HDFC Bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance Limited on 24 August 2022 summarizing the main terms of HDFC Bank’s proposed investment in the company for Rs 49.9 crore. It raised Rs 69.9 crore in two tranches through subscription of shares, the bank said in a regulatory filing.

The bank said it is proposing to acquire 9.944% of the company’s paid-in share capital, subject to the signing of a definitive agreement, the terms and conditions of which will be mutually agreed upon by both parties and other terms and conditions are met.

The company said it intends to start a life insurance business in India subject to a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI).