Axis Bank may approach the Reserve Bank of India for approval to buy an additional 10 per cent stake in Axis Max Life, says a CNBC-TV18 report. The additional stake purchase by Axis Bank could fetch as much as Rs 5,000 for Axis Max Life.
The report says that if Axis Bank’s stake purchase plans go through, it would become the promoter of Axis Max Life. The transaction would be carried out through preferential issue.
The report adds that Axis Bank is likely to approach the central bank after the resolution of its ongoing case with Securities and Exchange Board of India (SEBI). At the moment, SEBI is conducting an investigation into Axis Bank’s initial purchase of 20 per cent stake in Axis Max Life. Axis Bank is under SEBI scrutiny for alleged inadequate disclosure and unfair price advantage in Axis Max Life stake purchase deal.
Axis Bank share movement after Q1 result
Axis Bank’s profit declined by 3.97 per cent in the first quarter of FY26. In the aftermath of the quarterly results, declared on July 17, the bank’s share has slipped over 5% in last 5 days. Over 1 month, the share price of Axis Bank is down nearly 10%. Over 1 year, the stock has slumped over 14%.
Besides the disappointing quarterly number, the Axis Bank’s share price movement may have been affected by the latest change in management at the bank. 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.
Axis Bank clarifies
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.