The country's third largest private sector lender Axis Bank will invest around Rs 50-70 crore to acquire a little less than a 10 per cent stake in Fairfax-backed Go Digit Life Insurance. The lender is already a promoter of Max Life Insurance Company. Axis Bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for a proposed investment of up to Rs 70 crore in two tranches by picking up equity in the insurer.
The lender in a regulatory filing said it is planning to acquire an equity stake of up to 9.94 per cent in Go Digit Life Insurance. The stake buy is subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon alongside fulfilment of other conditions, Axis Bank said.
"The company proposes to carry out life insurance business in India, subject to the grant of certificate of registration by Insurance Regulatory and Development Authority of India," it said. Axis Bank along with its two subsidiaries Axis Capital and Axis Securities own a 12.99 per cent stake in Max Life Insurance. The lender plans to raise the stake to about 20 per cent in the near future. Shares of Axis Bank closed at Rs 737.30 apiece on BSE, down by 0.69 per cent.