Mumbai, May 14 -- After grappling with slower growth and elevated non-performing assets (NPAs) in its commercial loan portfolio, PNB Housing Finance is shifting its focus to profitability and margin maximization.

The lender is targeting high-yielding affordable and emerging markets to counter competitive pressures from banks offering cheaper loans in prime and super-prime categories, according to a senior executive at the company.

This shift also comes amid increasing competition from traditional housing finance companies (HFCs) like LIC Housing Finance, which are similarly targeting middle-to-lower-income customers.

To achieve profitability, PNB Housing Finance is expanding its retail housing portfolio by increasing affordable and eme...