/cloudfront-us-east-2.images.arcpublishing.com/reuters/5F2VOYRT6ZJ5HGNFOMO2LNOUTM.jpg "India’s Axis Bank intends to acquire a nearly 10% stake in Go Digit Life Insurance")
BENGALURU, Sept 27 (Reuters) – Indian private lender Axis Bank Ltd (AXBK.NS) said on Tuesday it had signed a non-binding term sheet to raise Rs. 499-699 million (6.12-8.57 million dollars) for a 9.94% interest Go to Digi Life Insurance.
The development underscores growing interest from private lenders in India’s lucrative and largely untapped insurance sector. The country’s largest private lender, HDFC Bank (HDBK.NS), also announced plans last month to acquire a 9.94% stake in Go Digit Life.
Digit, which already has a presence in general insurance, is branching out into the life insurance segment with its Go Digit Life venture, but has yet to be licensed for the entity.
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Reuters reported in August that Axis Bank’s stake purchase would value the startup’s forthcoming life insurance business at $90 million. Axis currently offers some insurance products in partnership with Max Financial. Continue reading
Go Digit General Insurance, Digit’s general insurance business backed by Canadian billionaire Prem Watsa’s Fairfax Group, had shelved its planned IPO this month. Continue reading
($1 = 81.5510 Indian Rupees)
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Reporting by Meenakshi Maidas in Bengaluru; Editing by Uttaresh.V
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