Axis Bank rejigs Ma Life deal after RBI objection

New Delhi, October 30

Axis Bank on Friday said the RBI has not allowed it to directly acquire 17% stake in Max Life Insurance and the lender will now purchase shares in the life insurer along with its subsidiaries.

Axis Bank and its entities have revised the agreement with Max Financial, the promoter of Max Life, to acquire 19.002% stake in the insurance firm, the lender said in a regulatory filing.

In late August this year, Axis Bank had entered into a definitive agreement with Max Financial Services Ltd (Max Financial) for the direct acquisition of 17.002 per cent of equity share capital of Max Life Insurance Company Ltd (Max Life) by the lender.

“In response to Axis Bank’s application to the RBI or directly acquiring 17.002% of the equity share capital of Max Life, the RBI has advised Axis Bank that the application for direct acquisition of 17.002% has not been considered,” it said in a regulatory filing. — PTI