Axis Bank to pick residual stake in Max Life at fair market value

The revision in valuation has been done according to IRDAI guidance

After receiving a rap from insurance regulator Insurance Regulatory and Development Authority of India (Irdai), Axis Bank on Tuesday said it has entered into revised agreements with Max Financial Services. Under these pacts, Axis will acquire the balance 7 per cent equity in Max Life Insurance at fair market value. This would be done using discounted cash flows instead of valuation according to Rule 11UA of the Income Tax Rules, 1962.

“This revision has been done consequent to the guidance received by Max Life from the Irdai,” the bank said in a notification to the exchanges.

Irdai had imposed monetary penalties