BLS E-Services plans acquisition this year for inorganic growth; earmarks Rs 28.71 cr

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New Delhi, May 16 (PTI) BLS E-Services Ltd, which runs rural banking outlets, is considering an acquisition in the current financial year as part of its inorganic growth strategy.

The company -- which has a tie-up with 15 banks, including State Bank of India, Bank of Baroda and HDFC Bank -- has 21,000 banking correspondent centres across the country.

"We are actively engaged with 2-3 companies. Due diligence is going on. We hope to do acquisition during the current financial year to push inorganic growth," BLS E-Services Ltd chairman Shikhar Aggarwal told PTI.

The company has earmarked Rs 28.71 crore for the acquisition, he said, adding that the money was raised through Rs 311 crore initial public offering earlier this year.

Besides, he said, the company is looking at organic growth by expanding its BLS Stores.

"During the FY24, we have also increased our reach and network to over 1,00,000 touch points and more than 1,000 BLS Stores," he said.

With regard to organic growth, Aggarwal said, the company will focus on cross-selling products like insurance and other financial services and foster financial inclusion through business correspondents.

"Our focus remains on expanding our network and reach through our BCs and digital stores, invest in building an advanced digital infrastructure which can withstand the quantum of transactions being envisaged given the trajectory of our economy," he added.

Talking about the annual number released recently, he said, the company has reported a 65 per cent increase in net profit at Rs 33.53 crore for the financial year ended March 2024 against Rs 20.33 crore in the previous fiscal.

The company's total income rose to Rs 78.71 crore from Rs 73.62 crore in the previous financial year.

Total expenses of the company also increased to Rs 64.29 crore during the financial year as compared to Rs 62.05 crore in FY23. PTI DP DP BAL BAL