Axis Bank to buy an additional 10 per cent stake in Axis Max Life, says a CNBC-TV18 report. It may approach the Reserve Bank of India for approval. The additional stake purchase by Axis Bank could fetch as much as Rs 5,000 crore for Axis Max Life.
Promoter of Axis Max Life
If Axis Bank’s stake purchase plans go through, it would become the promoter of Axis Max Life, according to the report. The transaction would be carried out through preferential issue.
Axis Bank To Approach Central Bank
The report further states that Axis Bank is likely to approach the central bank after the resolution of the ongoing case with Securities and Exchange Board of India (SEBI). SEBI is investigating Axis Bank’s initial purchase of 20 per cent stake in Axis Max Life. In Axis Max Life stake, purchase deal, Axis Bank is under SEBI scrutiny for alleged inadequate disclosure and unfair price advantage.
Axis Bank Share Price
In the first quarter of FY26, Axis Bank's profit declined by 3.97 per cent. After the declaration of the quarterly results on July 17, the bank's share has slipped in the last five days. The share price of Axis Bank slumped nearly 10% in one month. The stock slumped over 14% in one year.
Arjun Chaudhary Resigns
Earlier, on Friday, Arjun Chaudhary, who was leading Affluent Banking, Cards, Payments, and Retail Lending at the bank, resigned from his position as Group Executive. Besides the disappointing quarterly numbers, the Axis Bank’s share price movement may have been affected by the latest change in management at the bank.
Axis Banks Clarification
The Axis Bank has also clarified on its latest stock movement. In an exchange filing, the bank stated on Tuesday that the said increase in the volume of the shares of the Bank is purely market-driven and due to market conditions.
