Axis Bank is holding talks with Max New York Life to buy a less than 5% stake in the insurance company and intends to complete the deal shortly, according to the top bank official.
S Sengupta, Axis Bank’s Executive Director and CFO said, “We are in talks with Max New York Life to pick-up a less than five per cent stake. We are working on the valuation and the result of the talks will be known soon”.
Axis Bank has formed an association with Max New York Life for distributing the latter’s life insurance products with effect from April 1 after terminating its association with MetLife.
Sengupta said, “Our distribution tie-up will be on, irrespective of whether we acquire a stake in Max New York Life or not”.
Max New York Life is a joint business between the US-based New York Life and Analjit Singh’s Max India and has become a top life insurance company in the country.
Even a very small stake will show a healthy association between Axis Bank and Max New York Life. Sengupta said it will create value for the bank, and added “Max New York Life is growing rapidly and our investment will only increase in value.” After doing away with teaser home loans, this is another way for the bank to increase its revenue.
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