Axis Bank seeks to acquire insurance firmJanuary 11 2018 by InsuranceAsia News Staff
Axis Bank, the third-largest private-sector bank in India, is looking to acquire a life insurance business, reports The Economic Times, citing people with knowledge of the development.
The report said IDBI Federal Life Insurance and Tata AIA are among the possible targets for Axis Bank, which received approval from its executive committee in December to proceed with the acquisition plan.
The bank has appointed a US-based investment bank to look for a suitable midsize insurance player that can be acquired, the report added.
Axis Bank has bancassurance experience with partner Max Life, in which it has a 4.99% stake.
It is well-placed to explore insurance opportunities because of its experience and its strong retail franchise.
Axis Bank has not officially issued a statement regarding its acquisition plans.
Industry specialists said insurance has become a “sweetspot” in the financial services sector for some of the country’s lenders.
- June 22
The agreement with Sathapana Bank was signed at a ceremony attended by the finance ministry and central bank.
- June 15
The two institutions have forged a bancassurance partnership, initially covering parts of Europe and Australia.
- June 7
The Indian insurer is planning to partner with a host of banks as it shifts from its traditional stance.
- May 3
Regulators have given the green light for the proposed bancassurance tie-up with Robinsons Bank.