Max Life Insurance picks 2.99% stake in Capital Small Finance Bank for ₹49.5 crore

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Max Life Insurance Company Limited (Max Life) has opted for a 2.99 per cent stake in Jalandhar-based Capital Micro Finance (CSFB) for Rs 49.50 crore.

Toward this investment, up to 10,57,700 shares of CSFB stock of $10 each at a premium of $458 per share of stock were allocated to Max Life.

Sarvjeet Singh Samra, Managing Director and CEO of Microfinance Capital Bank, said: “We are pleased to announce the equity investment from Max Life Assurance Limited. This investment marks an important milestone for Microfinance Capital Bank and reinforces our commitment to delivering exceptional value to our clients. It is a testament to the strength of our bank and the confidence that Max Life Insurance has placed in us.”

As of May 31, 2023, this strategic investment has increased CSFB’s capital adequacy ratio (CAR) by more than 1 percent, raising it to 20.77 percent. This boost reflects the bank’s commitment to maintaining regulatory compliance and strengthening its financial position, according to the CSFB.

CSFB commenced operations as India’s first microfinance bank on 24th April 2016 after conversion from Capital Local Area Bank. Before conversion to microfinance bank, Capital Local Area Bank had been operating as the largest local bank in India since January 14, 2000.