http://www.peutereyset.com Customers buys financial stake in India

[2014peuterey]

Customers buys financial stake in India
http://Http://www.peutereyset.com customers Bancorp Chairman and CEO Jay S. Sidhu announced a business collaboration and $51 million stake in an Indian financialservices company.
Religare Enterprise Ltd, a publicly traded company based in New Delhi, will receive the money from the Wyomissing bank holding company over the next 18 months as Religare applies for a banking license in India, Customers said.
Religare said its founders, billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh, have decided to sell a nearly 23 percent stake to meet the Reserve Bank of India eligibility norms for new banks.
The transaction is part of a plan by the brothers to bring down their holding to 49 percent to qualify for the banking license in India.
Religare is among the contenders for new banking licenses. The deadline for applying to the Reserve Bank is Monday.
Customers will buy shares worth $22 million from the founders. It will invest another $28 million in preferential share warrants in Religare, convertible within 18 months, and subscribe to fresh shares worth $1 million, Religare said in a statement on its website.
India's central bank issued guidelines in February allowing any type of company to set up a bank.
Sidhu, who is in France on vacation, said in a prepared statement: "We http://www.peutereyset.com are very excited about working with a highquality company like Religare Enterprises.
"We think there are mutually beneficial opportunities for both organizations to explore. Going forward, our management team's extensive banking experience will be available to Religare in its banking foray,
Sidhu, a native of India, said Customers agreed to invest in India after doing research on investment opportunities in the financialservices industry there and hiring consultants Dinodia Capital Advisors, also in New Delhi.
"This is part of the way that can reduce their (the Singhs') stake,http://www.peutereyset.com, said James D. Hogan, chief financial officer at Customers. "It's been years since they (Reserve Bank) issued a bank license. We think Religare would be in a really good position to compete for one and we're certainly hopeful they will become a bank and serve an underserved population,
Hogan said Customers is hoping what it gets out of the deal is a referral system of Indian customers to Customers and the other way around.
Through the Religare collaboration, Hogan said Customers plans to set up a small group catering to professionals from Southeast Asia and businesses who want to take advantage of opportunities there.
"This is a rapidly growing niche in our markets from Boston to Washington, Hogan said.
He said Sidhu has spent some time in India re