PNB Housing Finance is planning a major change in how it lends money. The company wants to focus more on higher-yielding segments (loans that give higher interest returns). To do this, they are starting 'micro housing finance' this quarter. This move is part of a plan to grow their business while earning better margins on the money they lend to customers.

As of June 2024, the company had a total loan book of ₹89,670 crore. Currently, about 59% of these loans are in the 'prime' segment. Prime loans are usually larger amounts, specifically above ₹35 lakh. The rest of the money is in affordable housing (loans between ₹5 lakh and ₹35 lakh) and emerging markets. The Managing Director, Ajai Kumar Shukla, says they want to shift this balance. They want the mix of prime loans versus affordable and emerging market loans to reach a 55:45 ratio soon.

The company is thinking big for the near future. They expect their total loan book to cross the ₹1 lakh crore mark within this financial year. By the year 2028, they aim to reach ₹1.2 lakh crore. The CEO believes the company can grow its lending business by 18% to 20% every single year. For bankers, this shows a strong focus on aggressive growth in the housing sector, which is a key part of the Indian economy.

To grow faster, PNB Housing Finance is using a method called Direct Assignment (DA). This means they buy a pool of existing loans from other smaller companies instead of finding new customers themselves. Recently, they bought ₹146 crore worth of loans from four different companies. These were mostly affordable housing loans. This helps the company grow its book quickly without the high cost of opening new branches or hiring more staff to find borrowers.

Mr. Shukla explained that buying loan portfolios is very cost-effective. In the normal organic model (finding customers yourself), a bank has to pay for branches, staff, and marketing. With DA transactions, the main cost is just the price they pay to buy the loans. The company plans to make these purchased loans about 2% of their total business. They already have 400 branches, so they will keep finding their own customers while using these purchases as an extra boost.

For bank officers and aspirants, this story highlights how large lenders are moving away from just big city loans. They are now targeting smaller towns and micro-loans where interest rates are higher. It also shows the importance of 'Upper-Layer NBFC' regulations. Being in the upper layer means the company must follow very strict rules from the RBI, similar to how regular banks operate. This ensures that as they grow to ₹2 lakh crore, they stay financially healthy.

Customers in the affordable and micro-housing segments may find it easier to get loans now. As big players like PNB Housing Finance enter this space, there will be more competition and better service for small-ticket borrowers. Watch out for how other housing finance companies respond to this move toward micro-lending in the coming months.