Max Financial is the holding company of Max Life Insurance. As per reports, the proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which reportedly contributes more than 54% to Max Life's revenue. It will also eliminate uncertainty over the insurer having a strong, strategic bancassurance partner.

Axis Bank, which reportedly owns a little over 2% of Max Life, is expected to infuse more than Rs 2,000 crore in the insurer. The money will go toward funding Max Life's expansion plan, media reports said.

Meanwhile, shares of Axis Bank advanced 1.3% to Rs 750.80.

Max Financial Services' consolidated net profit surged 168.3% to Rs 105.22 crore on a 19.2% rise in total income to Rs 5365.74 crore in Q3 December 2019 over Q3 December 2018.

Max Financial Services operates as a life insurance company. The company, through its subsidiaries, provides life insurance and health insurance products, as well as healthcare services.