Morning Brief: Microfinance NPAs Hit Record Rs 50,000 Crore; Bezos Orders Ideological Overhaul Of WaPo Opinion Pages; India To Launch Rs 5,000 Plan To Disrupt Global Pharma; And More

Catch up on the day’s must-read stories with Swarajya's roundup of the morning's headlines.

Microfinance Sector NPAs Hit Record Rs 50,000 Crore 

Non-performing assets in the microfinance sector reached a record Rs 50,000 crore, or 13 per cent of gross loans, by December last year, despite the RBI easing capital requirements for risky unsecured assets. Data from credit bureau Crif High Mark shows that 3.3 per cent of loans were overdue by 91–180 days, while 9.7 per cent remained unpaid for over 180 days. Microfinance, which provides collateral-free loans to low-income households earning under Rs 3 lakh annually, primarily benefits women. Banks heavily exposed to unsecured lending, including Bandhan, IDFC First, IndusInd, and RBL, are experiencing rising stress. Bandhan Bank reported that 7.3 per cent of its Rs 56,120 crore unsecured loan portfolio had turned into NPAs by December 31.

Bezos Orders Ideological Overhaul Of WaPo Opinion Pages

Jeff Bezos has announced a major shift at The Washington Post, stating that its editorial pages will now champion free markets and personal liberties. As a result, Opinions editor David Shipley will step down after declining an offer to implement the new vision. The change follows the paper’s decision not to endorse Kamala Harris for president just days ahead of the 2024 election, which led to a quarter-million readers canceling their subscriptions. Several editorial board members resigned in protest, and prominent journalists and editors also left. The paper, already struggling, recently laid off four per cent of its staff, primarily in the business and public relations divisions.

India To Launch Rs 5,000 Plan To Disrupt Global Pharma

India is aiming to expand beyond its stronghold in generic drugs and position itself as a leader in pharmaceutical innovation. As part of this effort, the government will invite expressions of interest in March for a Rs 5,000 crore funding initiative to accelerate research in drug discovery, medical technology, and stem cell therapy. 

The scheme will provide financial support to startups and larger pharmaceutical firms investing in advanced drug research. Startups could receive up to Rs 1 crore in funding, while bigger companies involved in industrial research may secure between Rs 100-125 crore per project. The government has earmarked Rs 4,250 crore for these projects. The number of healthcare startups registered with DPIIT has grown significantly, doubling from 387 in December 2020 to 809 in December 2024.

Other Developments

Waqf Bill Moves Ahead As Cabinet Clears Amendments

The Cabinet has approved amendments to the Waqf (Amendment) Bill, incorporating recommendations from the Parliamentary panel, clearing the way for its discussion and passage in the second half of the budget session. Most of the changes suggested by the Joint Parliamentary Committee (JPC) have been accepted, and the bill was cleared last week along with the Indian Port Bill. The government has prioritised the bill as part of its legislative agenda. Referred to the JPC in August 2024, the panel adopted the report with a majority vote, despite opposition members objecting and submitting dissent notes.

Banks raised 75 per cent more funds through infrastructure bonds this financial year as deposit growth lagged credit growth and funding costs remained competitive. They issued Rs 89,588 crore in infra bonds in the first 11 months, up from Rs 51,081 crore in the previous year. Public sector banks accounted for 90 per cent of these issuances, a sharp rise from 51 per cent a year ago, while private banks made up the rest. Despite the surge in infra bonds, issuances of tier-2 and additional tier-1 (AT-1) bonds declined. Tier-2 bond issuances fell slightly to Rs 33,100 crore from Rs 34,329 crore, while AT-1 bond issuances dropped to Rs 8,000 crore from Rs 17,516 crore.

Centre Opposes Lifetime Ban On Convicted Politicians

The Centre has opposed a PIL seeking a lifetime ban on convicted politicians, arguing that only Parliament has the authority to decide on such disqualifications. In an affidavit to the Supreme Court, it defended the existing law, which bars convicted politicians from contesting elections for six years after completing their jail term. The government asserted that the provisions are constitutionally sound and ensure deterrence without undue harshness. It also stated that courts cannot dictate how Parliament should legislate, rejecting the petitioner’s demand as an attempt to rewrite the law. The Supreme Court had earlier sought responses from the Centre and the Election Commission, calling the criminalisation of politics a serious issue.

Trump Plans 25 Per Cent Tariffs On EU Goods

US President Donald Trump has announced plans to impose 25 per cent tariffs on goods from the European Union (EU), claiming the bloc was created to "screw the United States." He stated that the tariffs would apply to cars and other products, with a formal announcement expected soon. The EU condemned the move, warning of a firm and immediate response to what it called unjustified trade restrictions. Trump also suggested that tariffs on imports from Mexico and Canada, set to take effect on 4 March, might be postponed, though an administration official later confirmed the deadline remained.

From The States

Shah Rejects Stalin’s Delimitation Claim

Union Home Minister Amit Shah dismissed Tamil Nadu Chief Minister MK Stalin’s claim that the state would lose eight Lok Sabha seats due to delimitation. Shah assured that Tamil Nadu would not lose any parliamentary seats, citing Prime Minister Narendra Modi’s statement in the Lok Sabha. The upcoming delimitation exercise, set for next year, aims to redraw constituencies based on population and has sparked tensions between the DMK and the BJP-led central government. Stalin has called for an all-party meeting on March 5, warning that delimitation threatens Tamil Nadu’s representation in Parliament. He described the process as a danger to southern states and urged protests to protect the state's rights.

Lokayukta Seeks Governor’s Nod To Prosecute Kumaraswamy

The Karnataka Lokayukta SIT has again sought the governor’s permission to prosecute Union minister HD Kumaraswamy in the 2007 Sandur illegal mining case, submitting an English translation of all case documents for clarity. The case alleges that as Karnataka CM, Kumaraswamy illegally approved a 550-acre mining lease to Sri Sai Venkateshwara Minerals in Ballari, violating Minerals Concession Rules and bypassing the chief secretary’s advice. First flagged in the 2011 Lokayukta report by Justice N Santhosh Hegde, the case led to Kumaraswamy securing bail in 2015 after facing arrest threats. Kumaraswamy maintains his innocence, claiming he never signed the disputed file.

Follow along for more updates throughout the day.