Axis Bank Weighs Raising Max Life Stake To 30%, May Seek RBI Approval

Axis Bank is evaluating whether to raise its stake in Axis Max Life Insurance from the current 19.99% to as much as 30%, according to media reports and company statements. The bank could also approach the Reserve Bank of India (RBI) for approval if it decides to proceed, the lender's executive director Subrat Mohanty said.

"We will go through the process internally in terms of weighing the pros and cons of increasing the stake, and then go back to the regulator and check if they are open to this idea," Mohanty said during a post-earnings analyst call on Saturday. He added that the opening had come from "the clarification the RBI came up with in December last year."

Mohanty said Axis Bank had wanted a larger holding in the insurer for years but was earlier held back by regulatory limits. "As you know, in the past we were always keen on having a higher stake. At that point in time, the regulations didn't allow us," he said, noting that the fresh evaluation is now underway. "This particular evaluation will happen, and we will let you know based on our internal conversations and board approvals."

A Decade-Long Push

Axis Bank has been steadily increasing its holding in Max Life for more than ten years. In June 2026, it announced an additional investment of up to ₹381 crore, which took the combined stake of Axis Bank and its subsidiaries, Axis Capital and Axis Securities, from 19.02% to 19.99%. Max Financial Services continues to hold 80.01% of the insurer.

Based on the valuation used in that round, acquiring the remaining 10.01% needed to reach 30% would cost Axis Bank roughly ₹3,900 crore, though the final valuation may change by the time any plan takes shape.

RBI's Tiered Ownership Rules

The current opportunity stems from the RBI's master directions issued in December 2025, which laid out a tiered structure for how much banks can own in insurance companies. Banks need prior regulatory approval to hold a stake of 20% or more in an insurer. Holdings between 20% and 30% require a time-bound restructuring plan, while any stake up to 50% is capped at 10% of the bank's paid-up capital and reserves. The framework is meant to limit how much capital banks can channel into insurance underwriting risk.

Max Life, which is not listed on stock exchanges, reported a net profit of ₹54 crore in FY26. According to its website, the insurer has covered 1.01 crore lives and manages total assets of ₹1.75 lakh crore.

Axis Bank's earlier attempt to raise its stake dates back to April 2020, when it agreed to acquire a 30% holding and turn Max Life into a 70:30 joint venture with Max Financial Services. That plan was scaled down in August 2020 to a 17% stake purchase, taking its total ownership to 18% at the time, in line with the regulatory limits then in place.