MOSL: AXIS BANK (Buy)-Enters into exclusive arrangement with Max Financial
(AXSB IN, Mkt Cap USD29.3b, CMP INR744, TP INR860, 16% Upside, Buy)
** Axis Bank (AXSB), Max Financial Services Limited (MAXF) and Max Life Insurance have entered into an exclusive arrangement to explore a long-term strategic partnership, subject to all regulatory approvals.
** Axis Bank and Max Life already have a successful bancassurance (banca) arrangement for nearly a decade. AXSB has accounted for 55%-60% of total individual APE for Max Life over the past several years. This has enabled Max Life to emerge as a leading life insurance company in a space dominated by insurers promoted either by banks or NBFCs.
** AXSB has been looking to enter the life insurance business as a manufacturer for some time and consummation of this deal will boost symbiotic relationship between the two entities. AXSB's MD & CEO - Mr Amitabh Chaudhry - has a long and proven track record in building insurance business and his experience will come useful in scaling up the insurance franchise.
** While the deal contours are yet to be finalized, the long term tie-up with AXSB as a banca partner will remove an important overhang on MAXF and help it close the valuation gap with peers. AXSB will also benefit as it gets a large stake in a strong insurance franchise and benefits from the potential business rerating.
Axis Bank is a consumer and corporate bank engaged in operations in India. Co. maintains activities in both retail and corporate banking. Co. is also active as a mutual fund in the Indian capital market. Co., through its servicing and distribution network provides a complete range of services to its investors. As of March 31, 2011, Co. operated 1,390 branches and extension counters, as well as a network of approximately 6,270 ATMs. Co. also has branches in Singapore, Hong Kong, Shanghai, the UAE, and Sri Lanka. Co. provides services in consumer and corporate banking, NRIs, Retail loans, treasury services, Capital market services and Financial Advisory services.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.