Federal Bank is scaling back its home loan offerings as part of a strategic shift to prioritize more profitable lending segments, according to managing director and CEO KVS Manian. The decision comes amid fierce competition in the housing loan market and unattractive risk-adjusted returns. Instead, the bank will focus on higher-yielding products like credit cards, gold loans, and commercial vehicle loans. In its Q4 earnings report, Federal Bank announced a net profit of ₹1,259 crore for the quarter, reflecting a 21% increase from the previous quarter and a 22% increase year-on-year. The bank's net interest income rose to ₹3,173 crore, up 20% sequentially and 33% annually. Total customer assets reached ₹2.7 trillion, growing 10% year-on-year. Manian expressed optimism about the corporate loan segment, projecting a 10% growth rate for FY2027. The bank's net interest margin was reported at 3.74%, with expectations for improvement as the cost of funds decreases due to a higher proportion of low-cost deposits.