Axis Bank on Friday said the Reserve Bank has not allowed it to directly acquire a 17 per cent stake in Max Life Insurance and the lender will now purchase shares in the life insurer along with its subsidiaries.

Axis Bank and its entities have revised the agreement with Max Financial, the promoter of Max Life, to acquire a 19.002 per cent stake in the insurance firm, the lender said in a regulatory filing.

In late August this year, Axis Bank had entered into a definitive agreement with Max Financial Services Ltd (Max Financial) for the direct acquisition of 17.002 per cent of equity share capital of Max Life Insurance Company Ltd (Max Life) by the lender.

“In response to Axis Bank’s application to the Reserve Bank of India on directly acquiring 17.002 per cent of the equity share capital of Max Life, the Reserve Bank of India has advised Axis Bank that the application for direct acquisition of 17.002 per cent has not been considered,” it said in a regulatory filing.

“Axis Bank and its subsidiaries — Axis Capital and Axis Securities (together Axis Entities) have agreed to enter into revised agreements with Max Financial for acquisition of up to 19.002 per cent of the equity share capital of Max Life (revised agreements),” the filing said.

The lender said its total stake in Max Life will remain within the limits stipulated under the applicable laws.

“Under the revised agreements, Axis Bank will acquire up to 9.002 per cent of the equity share capital of Max Life, and Axis Capital and Axis Securities will together acquire up to 3 per cent of the share capital of Max Life.

“Axis entities will have a right to acquire an additional stake of up to 7 per cent of the equity share capital of Max Life, in one or more tranches, in accordance with existing regulations,” it said.