Axis Bank says followed all rules in Max Life Insurance deal

Axis Bank

Axis Bank chief Amitabh Chaudhry on Thursday asserted the lender has followed all rules and regulations in the deal to acquire a 20 per cent stake in Max Life Insurance.

The statement comes against the backdrop of two orders by the insurance sector watchdog Irdai in the last few days, wherein Max has been fined Rs 3 crore while a penalty of Rs 2 crore has been imposed on the bank regarding the deal on concerns over valuations.

''We believe all the rules and regulations have been followed through the entire deal process,'' Chaudhry, the bank's Managing Director and Chief Executive Officer, told reporters on a call.

He also said the bank is engaged with Irdai, and is very committed to the partnership both as a promoter and as a bancassurance partner.

The bank, which has completed acquiring 13 per cent of the overall 20 per cent stake it has been allowed to purchase, is committed to increase the stake, he added.

''We believe we have done everything the right way. Irdai has a different view. We are in conversation with them,'' he said.

When asked if it has received any communication from the markets regulator Sebi as well regarding the deal, Chaudhry replied in the negative.

He said the bank's internal probe in the insider trading matter involving executives from its asset management business has revealed that one of the persons has violated the securities law but the amount involved is not substantial.

The bank has shared the report with the capital markets regulator, and is in touch with Sebi for further actions, he said.

Meanwhile, on the over Rs 12,000 crore deal to acquire the domestic retail business of American lender Citi, Chaudhry exuded confidence of finishing the deal by end of March 2023 but also said that it may slip into the June quarter.

He said the business is performing as per the assumptions made during valuing the business, and at present, there is no question of invoking the clause where a provision has been made to decrease the valuations if there is a certain level of attrition in the metrices.