New Delhi, April 29 -- Federal Bank is dialing back its focus on housing loans due to intense market competition and unattractive yields, managing director and CEO KVS Manian said, adding that the bank will instead prioritize lending in higher-yielding segments to drive more profitable growth.

"Home loans is a highly competitive segment and at the current pricing, we do not see risk-adjusted returns being favourable. Therefore, we have consciously taken a call to go slower on home loans," Manian said in the bank's Q4 earnings call.

The bank is currently offering loans only to "multi-product customers" of the bank, he said, adding that it is actively moving away from customers who seek a home loan as their sole relationship with the bank...