Axis Bank Ltd has signed an agreement to pick up a 30 percent stake in Max Life Insurance Company Ltd, to strengthen its portfolio in the life insurance sector.
Both Axis Bank and Max Life signed an agreement, and the exchanges were notified about the deal on Tuesday.
Amitabh Chaudhry, MD and CEO, Axis Bank said they are hopeful that the joint venture will create immense value for the stakeholders because of the long standing, high performing partnership with Max Life.
“We believe this transaction will allow us to deepen our working relationship leading to better integrated teams and infrastructure and a superior alignment in our approach,” he said.
Recently, the board of Axis Bank had approved purchase of an additional 29 percent stake in Max Life Insurance, which would take the private lender’s total stake in the insurer to 30 percent.
After the signing of the agreement, Max Financial Services will hold 70 percent stake, and Axis Bank will have 30 percent in Max Life.
Axis Bank management is hopeful that the entire process will take six to nine months to clear the regulatory issues.
Max Life Insurance Company had a turnover of Rs 19,987 crore in 2019.