New Delhi, Aug. 6 -- After spending the past few years expanding its affordable housing business, PNB Housing Finance is now entering micro housing loans and financing for small property developers as it looks to improve loan spreads and support profitability.

The lender expects its affordable and emerging businesses to account for about half of total assets by the end of fiscal year 2027-28 (FY28).

"We are focussing more on emerging and affordable. Currently, my affordable plus emerging ratio is 41%, which should by the end of this year be around 45%. So that will give us an edge in the spread," managing director and chief executive officer Ajai Kumar Shukla said.

The entry into micro housing is a natural extension of the company's af...