Hospitals to reap the benefits of RBI's health care liquidity injection

While top hospital chains reported an average borrowing cost of 9.8% in H1FY21, loans under the special RBI liquidity window for the health care sector are expected to come at around 6%

The special liquidity window announced by the Reserve Bank of India (RBI) for the health care sector is anticipated to accelerate the growth plans of top hospitals chains.
 
The country’s top hospital chains reported an average borrowing cost of 9.8 per cent in H1FY21. Loans under the special RBI liquidity window for the health care sector are expected to come at around 6 per cent.
 
Bank borrowing is an important funding source for hospitals and it accounts for nearly half the capital employed by companies in new projects. Interest on borrowing is, however, a minor cost for hospitals.