Banks are allocating a specific corpus for financing medical equipment, diagnostic centres, and specialty hospitals, particularly in tier-2 and tier-3 towns, as demand for healthcare financing rises amid Covid-19. In order to gain market share, banks are providing more appealing pricing than non-banks due to the low penetration levels in this sector.

While Bank of Baroda (BoB) has hired a co-lending partner to provide sourcing knowledge, Axis Bank has established a distinct team to concentrate solely on this market.