HDFC Bank plans medical equipment financing

HDFC Bank is finalising its plans to foray into the medical equipment financing business.

"The market for sale of diagnostic as well as non-diagnostic medical equipment business is estimated to be about Rs 10,000 crore in India and only a small part is financed," Neeraj Swarup, head, retail business, HDFC Bank, told  Business Standard.

"It is too early to say when we will roll out the business. At present, we are examining various issues including vendor tie-ups," he said. HDFC has appointed the business head as well as the product head for this line of business.

The medical equipment financing business in India is dominated by GE Capital, which has leveraged GE's manufacturing business to its advantage.

ICICI Bank is another leading player in the segment and nationalised banks are also active. State Bank of India tied up with Siemens in early 2004 to finance its medical equipment. It already had tie ups with dental equipment manufacturers.

Through vendor tie-up, customers can be offered buy back option and other schemes. GE, Siemens and Philips are the top medical equipment vendors in India.

The loans are offered to finance electro medical and other sophisticated equipments including OT equipment, ambulance, generators, refrigerators and computers. In the case of setting up of clinics, purchase of furniture and fixtures, air-conditioning, electrification are also financed.