Reserve bank of india's board, Bank

Availability of funds due to recent measures announced by the Reserve Bank of India (RBI) can result in increased capacities and improve healthcare infrastructure in the long-term, investment information agency ICRA has said.On May 5, the RBI announced an on-tap liquidity window of Rs 50,000 crore with a tenor of up to three years that can be provided by banks for lending support to entities like hospitals, diagnostics, pharmacies, pharmaceutical companies or importers, medical oxygen manufacturers and suppliers and other operators involved in the critical healthcare supply chain.ICRA said while the measures aim at easing liquidity stress on the healthcare system, the pace of deploying funds to enhance capacities for catering to high number of infections will be a key monitorable going forward.Nevertheless, given that banks are being incentivised for quick delivery of credit under the scheme through extension of priority sector classification to such lending up to March 31 next year, the pace of disbursements of these loans might be faster than usual, it added.Mythri Macherla, Assistant Vice President and Sector Head at ICRA, said the RBI's move to bolster liquidity is expected to provide immediate liquidity support to entities like vaccine and oxygen manufacturers besides small-medium scale pharmaceutical companies looking at enhancing their capacities."However, some industry players may not prefer availing a loan under this structure, given the tenor cap of three years as against a typical payback period of five-plus years," she said.While industry players witnessed relatively lower occupancies in Q1 FY2021 because of the lockdowns and fear of infections, the same had improved sequentially in Q2 and Q3.This was primarily supported by a steady rise in domestic patient footfalls in addition to pick-up in elective surgeries and medical tourism volumes.Since the resurgence of infections, most hospitals have been witnessing a surge in Covid-19 patient volumes which can support the revenues for these entities in Q1 FY2022.But price caps on Covid-19 treatment in some states can dent margins for the industry, said ICRA. Besides, fear of a third wave of infection, deferral of elective surgeries and delayed diagnoses can also further impact the margins in FY2022.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Reserve Bank Of India's BoardFOLLOW

Reserve bank of india's board, Latest News

The Uttarakhand government on Monday announced that it has extended Covid curfew till May 25 due to the prevailing COVID-19 situation in the state. ...

The National Electronic Fund Transfer (NEFT) service will not be available for 14 hours on May 23, the Reserve Bank of India (RBI) said on Monday. ...

Video streaming platform Amazon Prime will now only offer a three-month subscription and an annual subscription to users. ...

We are living in the era of Covid-19 where "Work From Home" culture is the new normal. Today most IT companies are offering work from home for their employees to keep them safe from this virus. ...

A recent survey by CARE Ratings shows that a majority of industry leaders perceive lockdown to be a solution for the raging coronavirus situation across India with a sizeable number expecting it to extend only till May-end. ...

Digital transactions have grown rapidly in the last few years and everything from banking to shopping is happening online. ... ...

There are growing indications that India's latest wave of Covid-19 infections will add to risks among financial institutions (FIs) by sapping near-term momentum from the economic recovery, according to Fitch Ratings. ...

Availability of funds due to recent measures announced by the Reserve Bank of India (RBI) can result in increased capacities and improve healthcare infrastructure in the long-term, investment information agency ICRA has said. ...