Axis Bank said on Monday it has reduced the size of the stake that it plans to buy in Max Life Insurance to 17% from 29%.

Axis Bank, which already holds a minority stake in Max Life, will own an 18% interest in the insurer after the deal, the Mumbai-based lender said in a regulatory filing.
The financial terms of the revised deal were not disclosed.

It had initially planned to raise its stake in the insurer to 30% for about Rs 1590 crores.

The private-sector lender’s move comes months after media reports said the deal, announced in April, ran into a regulatory roadblock over certain clauses in the agreement.

"We would like to inform you that following recent developments, Axis Bank now proposes to acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18 % post the transaction. The parties have executed the definitive agreements. Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval. The transaction is subject to regulatory approvals," the bank said in its stock exchange filing.

Currently, Analjit  Singh-promoted Max Financial holds 73.5 per cent stake in Max Life, Japan-based Mitsui Sumitomo 25.5 per cent while Axis Bank holds nearly 1 per cent stake.

In its earlier agreement with Max Life, Axis  bank  had also said that if the value creation options are not consummated within 63 months from the closing, the transactions provide for a put option for the bank.

The bank would have the put option on the "company to sell all shares held by Axis Bank in Max Life at a price of ₹294 per share (subject to adjustments mutually agreed between parties) within 9 months of exercise of such put option," the filing had said.