InvestorQ : What is the idea behind Axis Bank picking up a 20% stake in Max Life Insurance Company? Will Axis Bank benefit from the same?
Katherine Gonsalves made post

What is the idea behind Axis Bank picking up a 20% stake in Max Life Insurance Company? Will Axis Bank benefit from the same?

Answer
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Rutuja Nigam answered.
7 months ago


The details are not yet out but Axis Bank is reported to pick up a 20% stake in Max Life in an equity swap deal. Axis Bank already contributes more than 54% of the total revenues of Max Life and hence this deal does make a lot of sense. For Max Life, it gives a strong bancassurance partner because the leaders like SBI Life, ICICI Pru Life and HDFC Life are all supported by a very solid bank behind them with a sound balance sheet. Axis will also infuse Rs.2000 crore into Max Life and these funds will be used to expand the reach of Max Life. Earlier, the Munjals were to take a stake in Max Life but that did not materialize. For Axis Bank this gives them an opportunity to expand their offerings to their customer since they do not have an existing insurance franchise with them.