Axis Bank has signed an agreement with Max Financial Services Limited (MFS) and its subsidiary Max Life Insurance Company Limited (Max Life) to "explore a long-term strategic partnership," the life insurance player said in a filing on Thursday.
"Axis Bank, Max Financial Services Limited (MFS) and its subsidiary Max Life Insurance Company Limited (Max Life) today signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life," the stock exchange filing said.
Max Life is the largest non-bank owned private life insurer in India. Max Financial Services presently holds a 72.5 percent stake in Max Life while Mitsui Sumitomo Insurance and Axis Bank hold 25.5 percent and 2 percent stake respectively.
Earlier, Economic Times had reported citing sources that the Axis Bank "is likely to infuse about Rs 2,000 crore into Max Life for more than 20 percent stake."
In his statement on the announcement, MD and CEO of Axis Bank, Amitabh Chaudhry said, "At the Bank, we constantly keep assessing various strategic opportunities and we see a potential for greater participation in the under-penetrated life insurance space. We have had a long standing bancassurance relationship with Max Life and the on-going discussions are a step further to deepen and strengthen this strategic partnership. The successful completion of the proposed transaction is expected to create significant value for all stakeholders."