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Bancassurance is a new concept where bank and insurance company collaborate to sell insurance through bank’s distribution networks. After liberalization, the financial industry has used this growth strategy to best utilize their same channels to sell multiple financial products. In India, a number of banks have joined hands with insurance companies and vice versa to use this bancassurance model to sell selected products. It has become a win-win strategy for bank and insurance companies both. The purpose of the study is to understand and analyze the benefit of Bancassurance to Axis bank because of acquiring stack in the Max New York Life Insurance Co. Ltd. It is a case study method of research. It is found that after acquiring the stake in Max New York Life Insurance, the financial performance of Axis Bank has improved. However, in the short term there is no impact visible in the stock market due this acquisition.

Contribution of Bancassurance on the Performance of Bank: A Case Study of Acquisition of Shares in Max New York Life Insurance by Axis Bank