Axis Bank has increased its holding in Max Life Insurance Company (Max Life) to 19.99 per cent for a consideration of ₹336 crore.

Prior to the purchase, it held a stake of 19.02 per cent in the life insurer.

The private sector lender said in a communication to the bourses that the acquisitions, divestments and merger committee of the board, at its meeting held on June 19, has approved a proposal to buy additional equity shares of Max Life.

With this, the aggregate shareholding of Axis Entities increased to 19.99 per cent, it added. The transaction is subject to regulatory approvals.

Axis Bank and its two subsidiaries — Axis Capital and Axis Securities — were allowed to collectively own about 20 per cent in Max Life Insurance by the Insurance Regulatory and Development Authority of India (IRDAI). The stake was acquired as part of a deal closed in 2021 between Axis Bank and Max Life Insurance.

Last year, Axis Bank entered into a revised agreement with Max Financial Services to acquire an additional 7 per cent stake in Max Life Insurance at fair market value using discounted cash flow method.

The revision in agreement follows the guidance issued by the IRDAI in October 2022.

Shares of Axis Bank on Wednesday ended at ₹1226.25 on the BSE, a rise of 2.94 per cent over the last close.