If balanitis is caused by bacterial infection, would blood test show elevated blood counts or esr,crp?

Balanitis: Not necessarily. This is a somewhat superficial infection and the lab parameters to which you are referring usually respond to systemic inflammation rather than simple uncomplicated skin/soft tissue processes.

Here is some..: Balanitis is just a general term denoting the inflammation of glans penis (head of penis) from all causes. In general, such change would not cause ESR or CRP to rise.