Private insurer Max New York Life will dilute four per cent stake by raising capital from its bancassurance partner Axis Bank, PTI reported quoting a top official. The Delhi-based life insurer has already got the regulatory approvals to dilute the stake.
"We are in the final stage of diluting four per cent stake. We have already received approval from Insurance Regulatory and Development Authority ( IRDA )) to dilute four per cent stake to Axis Bank," Max New York Life Managing Director and CEO Rajesh Sud told reporters here after declaring the results, according to the report.
Axis Bank has also received the Reserve Bank approval to invest in the insurance firm. The dilution agreement is for 10 years with an option to review equity after three years, the report said quoting Sud. He did not disclose the amount to be raised through this dilution.
Axis Bank, the third-largest Indian private bank, and Max New York Life Insurance have a 10 year bancassurance agreement to distribute latter's products through Axis Bank branches and distribution channels.
Max New York Life Insurance Company is a joint venture between Max India and New York Life International.