From E-Services to E-Branches—BLS Expands Its Banking Footprint with CSP Buy

Image Source: CNBC TV18

BLS E-Services Ltd, a BLS International subsidiary and digital services provider, has stated that a unit of the company would acquire Customer Service Points (CSPs) of State Bank of India (SBI) and HDFC Bank in a transaction of approximately ₹65 million (₹6.5 crore).

The transaction is a strategic initiative by BLS to expand its presence in the rural and semi-urban banking market, leveraging its position as a leader in assisted e-services and business correspondence. CSPs serve as mini-branches for offering basic banking services such as account opening, deposits, withdrawals, and remittances in rural and under-served regions.

The deal is expected to:

Enhance BLS's financial inclusion network
Augment its recurring revenue stream from banking tie-ups
Increase its penetration in tier-3 and tier-4 towns, where digital penetration is minimal

BLS E-Services has been expanding at a rapid pace, with over 98,000 touchpoints across India and a growing list of e-governance and fintech solutions. The company's focus on last-mile delivery is aided by government support to bridge the digital divide.

Relevant Sources: Screener, Chittorgarh, SPTulsian