Axis Bank declines after Subramanian Swamy alleges Rs 5,100 crore scam in Axis Max Life deal

Axis Bank slipped 1.01% to Rs 1061.75 after former Rajya Sabha member Subramanian Swamy filed a petition in the Delhi High Court against the Axis Bank-Max Life deal, accusing the private bank of a scam of Rs 5,100 crore.

Swamy has demanded an investigation by an expert committee, alleging that the bank got undue benefit from the deal.

In the petition, he raised questions about Axis Bank's transactions in Max Life. He also raised questions about the role of the Axis Bank chairman in the deal. Swamy has demanded the court make strict rules to prevent further scams.

In a regulatory filing made after market hours yesterday, the private bank informed that a public interest writ petition has been filed by Dr. Subramanian Swamy against Union of India, Axis Bank, Axis Securities, Axis Capital and others before the High Court of Delhi in connection with the sale / purchase of shares of Max Life Insurance Company.

Axis Bank stated that it has obtained all necessary regulatory approvals in connection with these transactions. The bank will also take required steps to defend Axis Bank against any unfounded allegations.

"Axis Bank believes that there is no material impact of the allegations being made against Axis Bank in connection with the said transactions, it added.

Axis Bank is the third-largest private sector bank in India. During the quarter, the bank added 100 branches taking its overall distribution network to 5,252 domestic branches and extension counters situated across 2,910 centres and 15,931 ATMs and cash recyclers spread across the country. The bank's Axis Virtual Centre is present across six centres with over 1,500 virtual relationship managers as on 31 December 2023.

The private lender's net profit rose 3.73% to Rs 6,071.10 crore on 25.07% increase in total income to Rs 33,515.96 crore in Q3 FY24 over Q3 FY23.

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