Indian private-sector lender Axis Bank is reportedly in talks to acquire large stake in Max Life Insurance Company.
In February 2016, the lender bought 4.99% for INR957.5m ($13.79m) to raise its stake in Max Life Insurance to 5.99%.
Sources familiar with the matter were quoted by The Times of India as saying that there is no certainty that the deal with go ahead as regulatory opinion of the RBI and IRDAI on the matter could make or break the deal.
Earlier, Indian regulators did not allow banks taking risky exposure or attempting diversification through subsidiaries.
Axis Bank already distributes a number of insurance plans of Max Life under a bancassurance pact.
Through this deal, Axis Bank seeks to join the league of SBI, ICICI Bank and HDFC Bank which controls insurance firms such as SBI Life, ICICI Pru Life and HDFC Life.
Max Financial Services owns 70% stake in the life insurer while Sumitomo, Axis Bank and other smaller shareholders including employees hold the remaining 30%.
Founded in 2010, Max Life Insurance offers a range of health, pension, and annuity. It offers child, protection, retirement, savings, and growth plans to individuals and to groups.