Axis Bank rose 0.77% to Rs 680.45 after the Competition Commission of India (CCI) on Wednesday gave its approval for the Axis Bank-Max Life transaction.
Competition Commission of India (CCI) on Wednesday (20 January 2021) said it has approved the stake acquisition in Max Life Insurance Company (Max Life) by Axis Bank, Axis Capital and Axis Securities. As per the combination notice filed with CCI, the shareholding of Axis Bank in Max Life will increase to approximately 9.9%.
In April 2020, Axis Bank and Max Financial Services (MFS) announced the signing definitive agreements to become joint venture partners in Max Life. The bank would hold 30% stake in Max Life post transaction closure.
In August 2020, Axis Bank announced tweaks insurance joint venture pact with MAX Life. As per the revised deal, Axis Bank would acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18% post the transaction.
In October 2020, the Reserve Bank did not allow Axis Bank to directly acquire a 17% stake in Max Life Insurance. Consequently, Axis Bank and its entities revised the agreement with Max Financial, the promoter of Max Life, to acquire a 19.002% stake in the insurance firm.
Axis Bank reported a net profit of Rs 1,683 crore in Q2 September 2020 as against net loss of Rs 112 crore in Q2 September 2019. Total income during the quarter rose 2.8% year-on-year (YoY) to Rs 19,870.07 crore in Q2FY21.
As on 30 September 2020, Axis Bank had a network of 4,568 domestic branches and extension counters situated in 2,582 centres along with 11,821 ATMs and 5,606 cash recyclers spread across the country.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
