The private bank will pick up a 9.9% stake in Fettle Tone, a promoter of Max Bupa Health Insurance Company (MBHI), for Rs 90.80 crore to strengthen is insurance business.
The definitive agreements in connection with the proposed acquisition have been executed by Axis Bank on 13 March 2021 and the acquisition is proposed to be completed on or before 17 March 2021. The plan is aimed at strenghtening Axis Bank's position in the insurance sector.
Fettle Tone is a special purpose vehicle (SPV) set up by True North Fund VI. It is currently a promoter of MBHI and holds about 55.6% of the total share capital of MBHI. MBHI is a standalone health insurance company registered with the Insurance Regulatory and Development Authority of India.
Shares of Axis Bank were down 1.07% to Rs 742.30 on BSE. Axis Bank is the third largest private sector bank in India. The private lender's net profit tanked 36.4% to Rs 1,116.60 crore while total income fell 1.1% at Rs 19,274.39 crore in Q3 December 2020 over Q3 December 2019.
As on 31 December 2020, the bank had a network of 4,586 domestic branches and extension counters situated in 2,586 centre compared to 4,415 domestic branches and extension counters situated in 2,521 centres as at end of 31 December 2019. As on 31 December 2020, the bank had 11,629 ATMs and 5,625 cash recyclers spread across the country.
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