Wall Street Financial Ltd (WSFL) has charted out a growth plan for the medium term and expects to increase their net profit from Rs 0.6 crore as expected this fiscal to Rs 3 crore by March 31, 2001. For this purpose the non-banking financial company (NBFC) would be venturing into insurance, e-commerce, consumer finance and merchant banking in a big way.
According to Rajan Mittal, chief executive officer of WSFL, the company would be looking to leverage their existing database, customer reach and expanding their non-funded business in order to achieve their targets with minimal risks.
"The new products are expected to add 50 per cent to the existing profits by March 2001. We would be taking advantage of the changes in capital markets and utilise our trained manpower for achieving our goals," Mittal added.
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In the field of insurance, the NBFC is currently in talks with foreign companies for forming a joint venture with the latter holding a 26 per cent stake. Since WSFL has a net worth of only Rs 18 crore, they would be looking to float a separate company for the same purpose. General insurance is currently the choice of the company as it would have synergies with their other businesses such as truck finance.
WSFL's e-commerce initiatives have already taken off with the launch of their portal, wallstreet.com. The site has largely been designed to assist website development, especially for the transport sector.
Mittal said, "We are likely to start IPO funding as part of the investment banking thrust. Apart from this, we are likely to act as marketing agents for banks for their various personal products, credit cards etc. At present we are in talks with a big private sector bank for provision of these services."