As per a leading daily, private sector lender Axis Bank on February 20 hinted at raising stake in Max Life Insurance Company, whose policies it has been selling for nearly a decade. The bank, which signed an agreement with Max Financial Services and its subsidiary Max Life Insurance Company, did not reveal the quantum of stake it will be buying.

Axis Bank said it has entered into a confidentiality and exclusivity arrangement to explore the possibility of entering into a long-term strategic partnership with Max Life.

A media report which was published hours before the announcement had claimed that the lender is eyeing more than 20 per cent stake in Max Life. Speculation about a potential transaction being in the works had been on for long.

''The strategic interest of Axis Bank in Max Life will lead to the much awaited permanence and allow both companies to work towards an enduring future for policyholders and other stakeholders,'' Analjit Singh, the founder and chairman of Max Group, was quoted as saying.

Shares of the company gained Rs 4.75, or 0.64%, to settle at Rs 748.70. The total volume of shares traded was 60,836 at the BSE (Thursday).